Ferrous scrap prices in India continued to rise aided by a rise in rebar demand and prices. Prices for imported scrap in India have also started to rebound, offering support to domestic material. With mills opting for domestic scrap all through January and early February, the availability of scrap is scarce in most areas.
In Indore, the bi-weekly index for HMS 1&2 (80:20) rose by Rs700/mt ($9.61/mt) from Tuesday to Rs27,500/mt ($377.45/mt) del mill while the index for Sponge iron increased by Rs500/mt to Rs26,000/mt del mill. Only a few sellers were willing to offer material, while the rest are waiting for prices to rise further.
In Jaipur, the bi-weekly index for HMS 1&2 (80:20) rose by Rs1,000/mt to Rs28,000/mt delivered mill amid a severe scarcity of scrap while the index for Sponge iron rose by Rs850/mt to Rs26,900/mt del mill. In Ahmedabad, the bi-weekly index for HMS 1&2 (80:20) rose by Rs900/mt to Rs26,800/mt delivered mill, the index for machine shop turnings rose by Rs700/mt to Rs25,600/mt del mill. The index for Sponge iron increased by Rs500/mt to Rs26,500/mt del mill. Prices for #1 HMS were heard at Rs27,800/mt delivered mill.
In Ludhiana, the bi-weekly index for HMS 1&2 (80:20) was at Rs27,800/mt delivered mill, up by Rs300/mt and the index for Sponge iron rose by Rs850/mt to Rs27,950/mt del mill.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs750/mt to Rs25,500/mt del Chennai mill amid steady demand. The price increase was also driven by a global and domestic scrap shortage. Mills, however, exercised caution while purchasing, citing an uncertain market. The Indian government’s initiatives to boost infra projects lifted finished steel prices and demand. The index for Sponge iron rose by Rs300/mt to Rs23,800/mt delivered mill
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs350/mt to Rs29,450/mt amid tight supply. Demand for finished steel has increased, aided by government efforts to infuse liquidity into construction projects. The index for P&S rose by Rs100/mt to Rs30,700/mt. Sponge iron manufacturers are reluctant to reduce offers amid hopes of a rise in prices in the near term. The index for Sponge iron settled flat at Rs25,200/mt delivered mill.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs27,250/mt. The index for Sponge iron rose by Rs300/mt to Rs24,700/mt del mill amid stable demand.