SteelMint's benchmark scrap index trends lower tracking decline in semis prices

SteelMint's domestic steel scrap (end-cutting) index slid by INR 1,000/tonne (t) to INR 47,600/t DAP Mandi Gobindgarh on 5 August, 2022.

Meanwhile, LMS (light melting scrap) prices were assessed at INR 42,600/t, HMS 80:20 at INR 45,100/t, and CR busheling at INR 49,000/t.

The correction in semis prices led to the decline in scrap prices.

Ingots prices in Mandi witnessed a downward correction of INR 600/t d-o-d to INR 52,500/t at the time of reporting. However, even at the lower rates, Mandi-Gobindgarh and Ludhiana belt markets saw trades in good volumes.

A few Mandi-based buyers said that the delivery of imported scrap which was 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.

Ship-breaking melting scrap prices dropped further by INR 300/t d-o-d in Gujarat's Alang market, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 43,700/t exy.

Market highlights-

End-cutting and ingot spread: The spread between end-cutting scrap and ingots shrunk by INR 500/t to INR 5,500/t which was earlier at INR 6,000/t.

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 14,000/t.

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