India: SteelMint scrap index dips following correction in semis prices

SteelMint’s domestic steel scrap (end-cutting) index fell by INR 600/tonne (t) to INR 45,400/t DAP Mandi Gobindgarh on 29 June 2022.

Meanwhile, LMS (light melting scrap) prices are assessed at INR 40,000/t, HMS 80:20 at INR 42,700/t, and CR busheling at INR 47,300/t.

Ingots prices in Mandi witnessed a downward correction of INR 700/t d-o-d and settled at INR 51,000/t at the time of reporting.

Although semi-finished steel demand was slow in today’s session, trading activity for scrap picked up and healthy volumes were traded in the domestic market.

Meanwhile, HR strip (patra) prices also dropped by INR 800/t ($10/t) in Mandi Gobindgarh and by INR 300/t ($4/t) in Raipur on 29 June. Current base grade patra (148-200mm, 2mm thick) prices stand at INR 53,600/t ($678/t) exw-Mandi and INR 52,900/t ($670/t) exw-Raipur, excluding GST at 18%.

Shipbreaking melting scrap prices opened higher by 200/t d-o-d in Gujarat’s Alang market. HMS (80:20) prices are assessed at INR 40,300/t ex-yard, SteelMint assessment shows.

Market highlights-

• End-cutting and ingot spread: The spread between end-cutting scrap and ingots lowered to INR 5,700-5,900/t today from INR 6,000/t last week.
• Domestic and imported scrap price gap: West Africa-origin HMS 1&2 (80:20) in containers was traded yesterday at $414/t CNF (INR 32,800/t) Nhava Sheva. There are speculations that imported scrap offers may increase in the near future.
• Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 16,400/t.

To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here

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