SteelMint’s domestic steel scrap (end-cutting) index rose INR 500/tonne (t) to INR 46,900/t DAP Mandi Gobindgarh on 18 July, 2022.
Light melting scrap (LMS) prices were assessed at INR 41,800/t, HMS 80:20 at INR 44,300/t and CR busheling scrap at INR 48,200/t.
What’s driving the market?
Scrap availability in the Punjab market is tight as supplies from the nearby markets have been impacted ever since GST checks by government officials commenced in a bid to eliminate unaccountable transactions.
Acoording to sources, approximately 66 scrap vehicles which arrived from Ghaziabad, Kanpur, Aligarh and Muzaffarpur were seized by the UP Police for GST checking.
Also, due to the Kanwar Yatra 2022, all heavy commercial vehicles, except city buses, will be diverted straight to NH-24 instead of Wazirabad Road or GT Road towards Shahdara, which may impact the timely delivery of scrap.
Meanwhile, scrap buyers have raised their bids to secure adequate supplies backed by a marginal rise in semi-finished steel prices.
However, in Gujarat’s Alang market shipbreaking melting scrap prices remained stable today, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 43,200/t exy.
Market highlights
End-cutting and ingot spread: The end-cutting scrap and ingot spread remained unchanged today at INR 5,500-6,000/t.
Domestic and imported scrap price gap: In Mumbai, melting scrap imported from West Africa (HMS 80:20) was traded yesterday at $455/t, while Dubai- and Europe-scrap were sold at $448/t and $470/t, respectively. Mumbai-based mills and those in the nearby regions are preferring to import scrap because domestic material is costlier by about INR 4,000/t.
Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billet in Raipur stands at around INR 14,500-14,550/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents,,Click here
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