Domestic ferrous scrap prices in India trended flat to up in India. Prices remained supported by bullishness in the global ferrous scrap markets, aiding supplier countries to raise offers for South Asian buyers. Multiple price hikes by primary mills in India has also lifted the market sentiment.
China plans to do away with the import duty of 2pc on ferrous scrap from ‘Most Favored Nations’ (MFN), as per its policy. Countries like Japan and Russia feature in China’s MFN list. Moreover, the country also plans to allow ferrous scrap imports with policy alteration. These factors could keep prices for ferrous scrap supported in Asia.
In the North, the daily Davis Index for HMS 1&2 (80:20) rose by Rs400/mt ($5.44/mt) to Rs27,500/mt ($373.99/mt) del Mandi Gobindgarh mill, and the index for Sponge iron settled at Rs28,750/mt delivered mill, down by Rs50/mt.
In Ludhiana, the bi-weekly index for busheling increased by Rs50/mt ($0.68/mt) to Rs32,500/mt ($441.76/mt) del mill, while the index for Sponge iron increased by Rs200/mt to Rs29,500/mt del mill. Price levels for Sponge iron remain unviable for most mills, which has impacted its trades. Amid bullish imported scrap prices, steelmakers are opting for domestic material. Although the supply of ferrous scrap has started to ease, it remains insufficient to cater to the domestic demand.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt Rs29,500/mt del Mumbai mill, also driven by the strengthened import market. A vessel and scrap shortage has given imported ferrous scrap prices a lift. The index for Sponge iron, however, settled flat at Rs28,100/mt del mill. Some Sponge iron manufacturers kept prices unchanged as they sought clarity in the price direction.
In South India, the bi-weekly index for HMS 1&2 (80:20) and Sponge settled flat at Rs31,000/mt del Chennai mill and Rs28,500/mt del Chennai mill, respectively. Buyers stayed away from any further deals as they are uncertain of market direction. Demand for finished steel also continued to lag. Mills are monitoring price and buying trends in other Asian markets as well as in Turkey, before making decisions.
In Hyderabad, the bi-weekly index for HMS 1&2 (80:20) and Sponge iron settled unchanged from Tuesday at Rs27,000/mt delivered mill and Rs27,800/mt delivered mill, respectively.
($1=Rs73.56)