SteelMint’s domestic steel scrap (end-cutting) index moved up by INR 300/tonne (t) to INR 41,750/t DAP Mandi Gobindgarh on 9 June 2022. Prices increased on account of an improvement in trade activity in today’s trading session.
Scrap buyers have raised their bids to secure adequate quantity backed by a marginal increase in semi-finished steel prices. Ingots prices in Mandi market today rose by around INR 300/t.
SAIL’s auctions from its IISCO Steel Plant based in Burnpur, West Bengal for around 1,000 t of pig iron was booked at INR 40,000-40,750/t exw.
Key highlights-
- End-cutting and ingot spread: In general, the end-cutting scrap to ingot spread is around INR 5,000-5,500/t. However, due to the shortage of the material, there is a gap of around INR 6,000-6,500/t DAP Mandi.
- Domestic and imported scrap price gap: Since imported scrap prices are higher by INR 1,500-2,000/t compared to domestic scrap, buyers have changed their preference to the latter. Currently, imported scrap is available at $468/t in Chennai. Imports will only be viable for buyers if prices fall by around $10-15/t.
- Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,000/t.
The Index also derives the HMS 80:20 scrap (Heavy, Med), and CR busheling scrap prices traded in the region.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – info@steelmint.com.
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