India: SteelMint's benchmark scrap index remains stable - 2 July

SteelMint's domestic steel scrap (end-cutting) index stood at INR 45,500/t DAP Mandi Gobindgarh, down slightly by INR 200/tonne (t) on 2 July, 2022.

LMS (light melting scrap) prices were assessed at INR 39,800/t, HMS 80:20 at INR 42,300/t, and CR busheling scrap at INR 47,600/t today.

Steel ingots prices in Mandi witnessed a slight correction of INR 200/t d-o-d at INR 51,300/t.

The onset of monsoon and soft weekend trading activity resulted in a correction in semi-finished steel prices.

Shipbreaking melting scrap prices in Gujarat's Alang market rose INR 800/t d-o-d on 2 July. HMS (80:20) prices are assessed at INR 40,800/t exy. A key reason behind the rise in scrap prices is the moderate improvement in the domestic semi-finished and finished steel markets yesterday.

Market highlights

• End-cutting and ingot spread: The end-cutting scrap and ingot spread remained unchanged today at INR 5,500-5,700/t.
  
  
• Domestic and imported scrap price gap: In Mumbai, imported melting scrap (HMS 80:20) in containers of Dubai origin was traded at $430/t CNF (INR 33,950/t) Nhava Sheva. Mills in Mumbai and those in the nearby regions are preferring to import scrap because domestic material is costlier by around INR 4,000-4,800/t.
  
  
• Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur increased by INR 100-200/t d-o-d to INR 16,400-500/t.
  
  

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