India: SteelMint scrap index decreases following correction in semis prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 600/tonne (t) to INR 44,900/t DAP Mandi Gobindgarh on 23 July 2022.

Meanwhile, LMS (light melting scrap) prices are assessed at INR 39,700-40,100/t, HMS 80:20 at INR 42,400-42,800/t, and CR busheling at INR 45,900-46,300/t.

Ingots prices in Mandi witnessed a downward correction of INR 500/t d-o-d to INR 50,500/t at the time of reporting.

There is a scrap shortage in the market which has limited any major fall in ingot prices. However, if scrap availability improves, a sharp correction of around INR 1,000-1,500/t in ingots is expected.

Ship-breaking melting scrap prices declined further by INR 400/t d-o-d in Gujarat's Alang market, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 42,200/t ex-yard. The consistent fall in semi-finished steel prices and low volume transactions in scrap forced suppliers to reduce their offers.

Market highlights-

• End-cutting and ingot spread: The spread between end-cutting scrap and ingots remains stable at INR 6,000/t this week.

• Domestic and imported scrap price gap: Both imported and domestic scrap prices are at par with each other. Dubai-origin imported melting scrap prices at Nhava Sheva Port stood at around $470/t while local scrap HMS(80:20) in Mumbai was assessed at INR 39,300/t FoR.

• 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 14,400-500/t.

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