Indian domestic ferrous scrap prices rose on Thursday due to a gradual rise in demand. The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt ($2.71/mt) to Rs23,000/mt del Mandi Gobindgarh. The index for Sponge iron rose by Rs100/mt to Rs22,500/mt del Mandi Gobindgarh.
A rise in input cost on the back of an iron ore shortage has impacted Sponge iron manufacturers across the country. The index for Sponge iron rose by Rs300/mt to Rs20400/mt del Durgapur, while the index for HMS 1&2 (80:20) rose by Rs50/mt to Rs24,800/mt del Durgapur mills.
In Indore, the bi-weekly index for HMS 1&2 (80:20) rose by Rs250/mt to Rs 25,350/mt delivered mill, and the index for Sponge iron increased by Rs500/mt to Rs23,200/mt del mill. With the strengthening finished steel market, traders withheld offers hoping for prices to rise further, according to mills. Thus, buyers had to raise bids to meet present offer levels.
In Jaipur, the bi-weekly index for HMS 1&2 (80:20) rose by Rs200/mt to Rs 24,200/mt delivered mill, and the index for Sponge iron increased by Rs500/mt to Rs22600/mt del mill.
Mills in Mumbai are still resorting to purchases on a need basis. The daily Davis Index for HMS 1&2 (80:20) and Sponge iron settled flat at Rs24,000/mt del Mumbai and Rs21,000/mt delivered mill, respectively.
Markets in South India witnessed muted demand, and the index for HMS 1&2 (80:20), while Sponge iron settled flat at Rs23,000/mt and Rs20,500/mt del Chennai, respectively.
Demand for ferrous scrap in Jalna picked up on Thursday, in line with the finished steel prices. The bi-weekly index for HMS 1&2 (80:20) rose by Rs700/mt to Rs24,400/mt del Jalna mills.
Traders are expecting scrap prices to remain firm in the coming days amid steady demand from the auto manufacturers and resumption of construction activities in different parts of the country.
($1=Rs73.63)