Most domestic ferrous scrap markets in India have turned silent before the financial year closes on March 31. Mills focussed on clearing statutory payments and closing their books. Steelmakers purchased scrap only on a need basis.
Additionally, steel demand and prices, especially that for rebar, remain under pressure. CRC and HRC market, however, is still bullish and expected to remain so till the year-end.
In Jaipur, the bi-weekly index for HMS 1&2 (80:20) fell by Rs350/mt ($4.81/mt) from Tuesday to Rs30,750/mt ($422.65/mt) delivered mill; while the index for Sponge iron settled at Rs29,500/mt delivered mill, down by Rs250/mt. Ahead of the Holi festival, trading has slowed. Sluggish finished steel demand.
Fears of renewed lockdown restrictions in the state of Maharashtra, which houses the financial capital of the country – Mumbai — have led to a negative sentiment throughout the country. In Mumbai, the daily Davis Index for HMS 1&2 (80:20) and Sponge iron dropped by Rs300/mt to Rs29,500/mt and Rs25,900/mt delivered mill, respectively. Rebar prices in the city fell by Rs900/mt, which has dampened trading interest. In the steel city of the state, Jalna, sellers resisted lower bids. Thus the index for HMS 1&2 (80:20) and Sponge iron have settled unchanged at Rs30,500/mt and Rs28,500/mt del Jalna mill, respectively.
The strike against GST-related issues in Mandi Gobindgarh continued for yet another day keeping the index for HMS 1&2 (80:20) and Sponge iron flat at Rs32,500/mt, and Rs28,600/mt delivered mill, respectively.