Domestic ferrous scrap prices remained largely flat to up on Tuesday amid hopes of bullishness in the steel market sustaining. Scrap buying in Turkey is likely to pick-up next week and give imported scrap a further lift.
In the North, the daily Davis Index for HMS 1&2 (80:20) rose by Rs400/mt ($5.46/mt) to Rs30,200/mt ($412.45/mt) del Mandi Gobindgarh mill on the back of strong global cues and shortage of domestic material. Although there is a demand for finished steel, it is yet to reach anticipated levels. The index for Sponge iron rose by Rs200/mt to Rs30,000/mt del mill on firm offer prices as Sponge iron producers are struggling to maintain their margins. In Ludhiana, the index for HMS 1&2 (80:20) settled unchanged at Rs31,550/mt del mill while the index for Sponge iron increased by Rs550/mt to Rs30050/mt del mill.
In Mumbai, the Davis Index for HMS 1&2 (80:20) and Sponge iron remained unchanged at Rs30,000/mt and Rs28,250/mt del mill. Supply of scrap has started outpacing demand. But a steady recovery in scrap and finished steel demand kept prices from falling. Sellers kept their offers firm in hopes of Turkey resuming buying in the coming days, supporting imported scrap prices.
In South India, the bi-weekly index for HMS 1&2 (80:20) and Sponge iron settled flat at Rs32,000/mt and Rs28,500/mt del Chennai mill, respectively. No trades took place as the market remained closed due to torrential rains.
The bi-weekly index for HMS 1&2 (80:20) rose by Rs300/mt to Rs29,150/mt del Hyderabad mill, and the index for Sponge iron registered an uptick of Rs50/mt to Rs28,000/mt del mill.
In Indore, the bi-weekly Davis Index for HMS 1&2 (80:20) increased by Rs500/mt to Rs30,800/mt delivered mill, while the index for Sponge iron rose by Rs1,500/mt to Rs29,500/mt del mill.
Among other market updates, China has resumed imports of ferrous scrap under the recycled category. Countries like Russia and Japan reflect in China’s list of ‘Most Preferred Nations’. Russia, however, has started levying duties on exports of ferrous scrap which could impact material availability from the country. Should China resort to trades for the material from Japan, it could have an impact on Asian ferrous scrap prices.
($1=Rs73.22)