Indian domestic scrap prices in Mandi Gobindgarh registered an uptick on Wednesday. HMS prices were supported by a rise in ingot offers as finished steel demand showed some signs of revival in North India.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt ($3.97/mt) to Rs20,100/mt ($266.12/mt) del Mandi Gobindgarh mill. The index for sponge iron, however, settled unchanged at Rs19,000/mt del mill. Trades were reported at the index price.
There is no clear price direction in the Indian market as mills and traders have adopted a wait-and-watch approach. The ongoing south-west monsoons have kept demand for finished steel low. Additionally, the rising COVID-19 cases in the country have also dampened market sentiments. Traders believe, there is a possibility of a disconnect between the global price movement and the Indian domestic market in the near term, at least till the pandemic comes under control.
In Mumbai, prices were largely unchanged with limited trades. The city continues to clock a high number of new COVID-19 cases. Labourers thus were unwilling to return to work. Mills in Mumbai are working with a limited workforce at lower than usual capacity levels. The daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs19,000/mt del Mumbai mills and the index for sponge iron settled at Rs15,900/mt del mills, also unchanged.
($1=Rs75.71)