SteelMint’s domestic steel scrap (end-cutting) index increased by INR 1,150/tonne (t) to INR 47,650/t DAP Mandi Gobindgarh on 8 July, 2022.
Light melting scrap (LMS) prices were assessed at INR 42,500/t, HMS 80:20 at INR 45,100/t and CR busheling scrap at INR 49,200/t.
Steel ingots prices in Mandi Gobindgarh increased by INR 800/t to INR 53,500/t d-o-d (till the time of publishing this index).
The key factor supporting the hike in scrap prices was improved demand for semi-finished steel and limited availability of scrap material.
Shipbreaking melting scrap prices in Gujarat’s Alang market increased by INR 1,500/t d-o-d, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 43,200/t ex-yard. The sudden hike in semi-finished steel prices yesterday left the market perplexed and most participants held scrap offers, opting to wait and watch. Meanwhile, a few semis deals for same-day delivery were heard concluded at higher levels.
Market highlights
End-cutting scrap and ingot spread: The spread between end-cutting scrap and ingot remains unchanged at INR 5,500-5,700/t today from INR 6,000/t last week.
Domestic and imported scrap price gap: In Mumbai, imported melting scrap, HMS 1&2(80:20) in containers of West African origin, is available at $440/t (INR 34,850/t) Nhava Sheva. Mills in Mumbai and those in the nearby regions are preferring to import scrap because domestic material is costlier by around INR 2,000-2500/t.
Raipur sponge iron-billet spread: The conversion spread (margin) from pellet-based DRI (P-DRI) to billets in Raipur stood at around INR 15,700/t today.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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