SteelMint’s domestic steel scrap (end-cutting) index increased by INR 800/tonne (t) to INR 48,600/t DAP Mandi Gobindgarh on 12 August.
Light melting scrap (LMS) prices were assessed at INR 43,800/t, HMS 80:20 at INR 46,400/t and CR busheling scrap at INR 50,100/t.
Steel ingots prices in Mandi Gobindgarh increased by INR 1,000/t to INR 53,400/t in last two days, at the time of publishing this index.
The key factors supporting the hike in scrap prices were limited availability of scrap due to GST checks by government officials, while bad weather conditions also disturbed the supply chain.
Cash crunch was another factor that affected buying and selling activity due to bank holidays ahead.
Market highlights :-
End-cutting scrap and ingot spread: The spread between end-cutting scrap and ingots remains unchanged at INR 6,000/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were around $460-480/t, while local scrap – HMS(80:20) – in Mumbai was assessed at INR 43,200/t FOR. Scrap imports are preferred by the Mumbai-based mills and those in the nearby regions because domestic scrap prices are higher by about INR 2,000-2,500/t.
Raipur sponge iron-billet spread: The conversion spread (margin) from pellet-based DRI (P-DRI) to billets in Raipur stood at around INR 14,650/t today against the earlier INR 14,600/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click Here
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