India: SteelMint's scrap index drops tracking correction in semis prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 47,900/t DAP Mandi Gobindgarh on 3 Aug, 2022.

Meanwhile, LMS (light melting scrap) prices are assessed at INR 43,000/t, HMS 80:20 at INR 45,700/t, and CR busheling at INR 49,200/t.

Ingots prices in Mandi witnessed a downward correction of INR 50/t d-o-d to INR 53,200/t at the time of reporting.

The key markets of Punjab, Maharashtra and Central India have been impacted ever since GST checks by government officials started in a bid to eliminate unaccountable transactions.

There is scrap shortage in the market which has limited any major fall in ingot prices. However, if scrap availability improves, a sharp correction of around INR 2,000-3,000/t in ingot prices is expected.

Ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 400/t d-o-d, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 44,200/t ex-yard.

Market highlights-

End-cutting and ingot spread: The spread between end-cutting scrap and ingots remains stable at INR 6,000/t this week.

Domestic and imported scrap price gap: Imported and domestic scrap prices are at par with each other. West Africa-origin imported melting scrap prices at Nhava Sheva Port stood at around $450/t while local scrap HMS(80:20) in Mumbai was assessed at INR 43,000/t FoR.

Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,500/t.

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