Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

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.


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