SteelMint’s domestic steel scrap (end-cutting) index moved up by INR 700/tonne (t) to INR 44,400/t DAP Mandi Gobindgarh on 23 June 2022.
Light melting scrap (LMS) prices were assessed at INR 39,600/t, HMS 80:20 at INR 42,300/t and CR busheling scrap at INR 46,200/t.
Scrap availability in the market is very low as GST checks launched by the government officials to crack down on unaccountable transactions have impacted arrivals from the nearby markets.
Meanwhile, scrap buyers have raised their bids to secure adequate supplies backed by a marginal rise in semi-finished steel prices. Ingots prices in Mandi today rose by around INR 500/t d-o-d to INR 50,000/t.
An auction for around 4,000 t of steel grade pig iron by SAIL-BSL was held yesterday. The entire quantity was booked at INR 44,000/t ex-works. Bid price increased by INR 1,000/t as compared to the previous auction held of 8 June.
Shipbreaking melting scrap prices increased by INR 300/t d-o-d in Gujarat’s Alang today, as per SteelMint’s assessment. HMS (80:20) prices are assessed at INR 40,500/t exy.
Market highlights:
o End-cutting scrap and ingot spread: The spread between end-cutting scrap and ingots lowered to INR 5,400-5,600/t from INR 6,000/t last week.
o Domestic and imported scrap price gap: In Mumbai, imported melting scrap (HMS 80:20) of Dubai-origin is being traded at $400/t CNF (INR 31,200/t) Nhava Sheva, a fall of $45/t from last week.
o Raipur sponge iron-billet spread: The conversion spread (margin) from pellet-based DRI (P-DRI) to billets in Raipur stands at around INR 16,100/t today.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click Here
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