Ahead of the Diwali festival, steel and ferrous scrap trades have started dipping in India. But suppliers have kept their offers firm expecting a bullish market next week.
In Mandi Gobindgarh, the index for HMS 1&2 (80:20) rose by Rs700/mt ($9.38/mt) to Rs24,300/mt ($325.65/mt) del mill. Some mills stocked material before the dispatches halt for the festival. The index for sponge iron, however, settled unchanged at Rs25,000/mt del mill. In another northern market, the bi-weekly Davis Index for HMS 1&2 (80:20) increased by Rs1,000/mt to Rs25,250/mt del Ludhiana mill, while the index for Sponge iron was up by Rs650/mt to Rs26,350/mt del mill.
In South India, the index for HMS 1&2 (80:20) rose by Rs750/mt to Rs25,200/mt del Chennai with moderate demand for finished steel, while the index for Sponge iron rose by Rs900/mt to Rs23,200/mt del Chennai.
Among other daily markets, the Davis Index for HMS 1&2 (80:90) settled flat at Rs25,500/mt del Mumbai mill, with limited trades reported amid scarce labour availability affecting transportation, while the index for Sponge iron rose by Rs600/mt to Rs23,800/mt delivered mill, mainly on increased offers.
In Raipur, the bi-weekly index for HMS 1&2 (80:90) rose by Rs550/mt to Rs27,050/mt amid a rise in raw material prices as well as imported scrap prices. The index for sponge, however, rose by Rs700/mt to Rs23,200/mt del mill. Sponge prices are expected to stay firm till the iron ore shortage eases, which mills believe could happen in December.
($1=Rs74.62)