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

SteelMint's domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 47,200/t DAP Mandi Gobindgarh on 6 August, 2022.

Meanwhile, LMS (light melting scrap) prices are assessed at INR 42,200/t, HMS 80:20 at INR 44,700/t, and CR busheling at INR 48,500/t.

Ingots prices in Mandi fell INR 500/t d-o-d to INR 52,000/t at the time of reporting.

Overall, the domestic scrap market remained silent with no significant buying or selling activity reported.

Also, markets in Punjab, Maharashtra and central India were impacted ever since GST checks by government officials started in a bid to eliminate unaccountable transactions.

Delivery of imported scrap booked in June has begun. However, as imported scrap does not satisfy the daily requirements of Mandi-based mills, they are still active in the domestic market.

Shipbreaking melting scrap prices in Gujarat's Alang market decreased by INR 600/t d-o-d, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 43,100/t ex-yard.

Market highlights-

End-cutting and ingot spread: The spread between end-cutting scrap and ingots remains stable at INR 5,500-5,700/t this week.

Domestic and imported scrap price gap: 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 42,200/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.

To see SteelMint's Melting Scrap Assessment, pricing methodology and specification documents, Click Here

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.