SteelMint’s domestic steel scrap (end-cutting) index increased by INR 650/tonne (t) to INR 47,400/t DAP Mandi Gobindgarh on 27 July, 2022.
Light melting scrap (LMS) prices were assessed at INR 42,500/t, HMS 80:20 at INR 45,200/t and CR busheling scrap at INR 48,900/t.
The key factor supporting the hike in scrap prices was improved demand for semi-finished steel and limited availability of scrap.
Steel ingots prices in Mandi Gobindgarh also increased by INR 900/t to INR 52,700/t d-o-d at the time of publishing this index.
A shortage of scrap in Mandi market caused ingot manufacturers to reduce their conversion spread by INR 300/t on a daily basis. Current conversion spread (scrap to ingot) is at INR 11,200/t compared to INR 11,500/t previously.
Market highlights-
End-cutting scrap and ingot spread: The spread between end-cutting scrap and ingot remains unchanged at INR 6,000/t.
Domestic and imported scrap price gap: As Pakistan, Turkiye and Bangladesh are absent in the imported market, suppliers have shifted their interest towards India. Moreover, buyers are booking imported material due to higher domestic scrap prices. The current landed cost of Dubai-origin HMS 1&2 (80:20) is at INR 36,750/t which is lower by INR 3,000-3,250/t as compared to domestic HMS prices at INR 40,700/t DAP Mumbai basis.
Raipur sponge iron-billet spread: The conversion spread (margin) from pellet-based DRI (P-DRI) to billets in Raipur stood at around INR 15,200/t today which was earlier at INR 15,000/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents,Click here
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