SteelMint’s domestic steel scrap (end-cutting) index increased by INR 800/tonne (t) to INR 45,700/t DAP Mandi Gobindgarh on 25 July, 2022.
Light melting scrap (LMS) prices were assessed at INR 40,700/t, HMS 80:20 at INR 43,400/t and CR busheling scrap at INR 46,900/t.
Steel ingots prices in Mandi Gobindgarh increased by INR 700/t to INR 51,200/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.
Punjab scrap market is tight as supplies from the nearby markets have been impacted ever since GST checks by government officials commenced in a bid to eliminate unaccountable transactions.
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: In Mumbai, imported melting scrap, HMS 1&2(80:20) in containers of West African origin, is available at $440/t (INR 35,100/t) Nhava Sheva. And from Nhava Sheva to Mumbai area transportation freight is around 2,500/t .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 14,850/t today.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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