Domestic ferrous scrap prices were firm in most regions amid a recovery in demand. Large-scale steelmakers continued to focus on exports.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs400/mt ($5.47/mt) to Rs37,900/mt del Mandi Gobindgarh, while the index for sponge iron rose by Rs300/mt to Rs34,000/mt delivered mills.
Secondary mills in the North increased rebar prices by Rs200-400/mt due to increased input cost and firm demand.
In Ludhiana, the bi-weekly index for busheling was up by Rs150/mt to Rs40,100/mt delivered mill, while the index for sponge iron was unchanged at Rs34,400/mt del mill. Amid a standoff between traders and mills, loading and unloading activities in the region have taken a hit. The market was thus silent.
Activity in the steel market in West India was slow because of heavy rainfall, and mills procured raw material on a need basis. The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs34,000/mt del Mumbai mills, and the index for sponge iron rose by Rs200/mt to Rs30,700/mt delivered mills.
In Ahmedabad, the bi-weekly index for HMS 1&2 (80:20) was unchanged at Rs35,500/mt delivered mill, while the index for sponge iron fell by Rs250/mt to Rs29,400/mt del mill.
With lockdown restrictions still in place, most mills in East India chose to stay silent until markets reopen and offer a clear price direction. The bi-weekly index for HMS 1&2 (80:20) settled flat at Rs37,000/mt del Durgapur mills, and the index for sponge iron rose by Rs300/mt to Rs30,300/mt delivered mills.
In Jaipur, the bi-weekly index for HMS 1&2 (80:20) was at Rs36,000/mt delivered mill, down Rs350/mt from Tuesday, while the index for sponge iron declined by Rs200/mt to Rs33,100/mt del mill as softening steel prices on Wednesday led to buyers reducing bids on Thursday.
Chennai-based steelmakers have secured many export orders and returned to the market for their raw material requirements. The bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs35,500/mt del Chennai mills, and the index for Sponge iron settled flat at Rs30900/mt delivered mills.
Market participants expect ferrous scrap prices to improve in the near term amid tight supply and firm demand. Offers for seaborne scrap have also increased on Thursday by $5/mt, with the index for HMS 1&2 (80:20) up by $2/mt to $483/mt cfr Nhava Sheva.