Domestic ferrous scrap prices in India have started to rebound since late last week. A rise in steel prices has supported the recovery to a large extent.
In Jaipur, the bi-weekly index for HMS 1&2 (80:20) rose by Rs1,400/mt ($19.20/mt) from the prior Thursday to Rs27,000/mt ($370.36/mt) del mill. The index for Sponge iron increased by Rs450/mt to Rs26,050/mt del mill. Availability of ferrous scrap has dropped as infrastructure construction projects, as well as demolition activities, remain stalled. The short supply is also a result of mills focusing more on domestic scrap purchases over imported material through January.
In Indore, the bi-weekly index for HMS 1&2 (80:20) rose by Rs400/mt to Rs26,700/mt delivered mill, while the index for Sponge iron increased by Rs1,000/mt to Rs25,500/mt del mill. Sellers offered limited tonnage in the market amid hopes that prices have bottomed out.
In Ludhiana, the bi-weekly index for HMS 1&2 (80:20) rose by Rs1,500/mt to Rs27,500/mt delivered mill, while the index for Sponge iron rose by Rs550/mt to Rs27,100/mt del mill. The index for busheling rose by Rs1700/mt to Rs30,700/mt del mill. As the market absorbed the rise in finished steel last week, sellers started to raise asking prices. The rise is likely to sustain for short-term believe traders.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs875/mt to Rs24,750/mt del Chennai mill amid sustained demand. The rise in trading activity was in anticipation of an increase in finished steel prices in the near term as contractors look to meet their March-end deadline. Mills state markets are still uncertain and hope for some stability. The index for Sponge iron rose by Rs400/mt to Rs23,500/mt del mill.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt to Rs28,300/mt amid tight supply. The index for P&S rose by Rs200/mt to Rs29,700/mt. Sponge iron manufacturers were reluctant to reduce offers as the finished steel prices in most regions like Raipur, Jalna and Durgapur were on a rise. The index for Sponge iron increased by Rs250/mt to Rs24,850/mt with limited deals.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) rose by Rs250/mt to Rs26,750/mt. The index for Sponge iron rose by Rs450/mt to Rs23,800/mt del mill amid a positive market sentiment.
($1=72.90)