India: SteelMint benchmark scrap index up INR 500/t on semis demand recovery

SteelMint’s domestic steel scrap (end-cutting) index increased further by INR 500/tonne (t) to INR 42,800/t DAP Mandi Gobindgarh on 11 June, 2022.

Meanwhile, prices of HMS 80:20 stood at INR 41,000/t, and CR busheling at INR 45,200/t.

The key factor supporting the hike in scrap prices on a d-o-d basis was improved demand of semi-finished steel and tight scrap availability.

Today shipbreaking melting scrap prices remained stable at INR 40,500/t in Alang, Gujarat.

An auction for around 1,000 t of steel grade pig iron by RINL-Vizag Steel was held yesterday. The entire quantity was booked at INR 44,100/t ex-works.

Key highlights-

• End-cutting and ingot spread: The spread between end-cutting scrap and ingots lowered to INR 6,000/t today. Yesterday, the spread was around INR 6,200/t. The conversion spread from LMS (light melting scrap)  to ingot dropped by INR 500/t d-o-d in Mandi Gobindgarh.
• Domestic and imported scrap price gap: In Chennai, imported melting scrap (HMS 80:20) was traded at $463/t CNF (INR 36,000/t) and $450 (INR 35,000/t) Nhava Sheva. Mumbai-based consumers preferred imported scrap over cost efficiency as local material is around INR 700-800/t higher the imported one.
• Raipur sponge iron-billet spread: Today, the conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stands at around INR 14,200/t, down from INR 14,300-400/t yesterday.

To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here

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