Domestic ferrous scrap prices in India were mixed on Monday. In North India, prices either rose or recorded a less steep fall compared to other regions.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt ($2.74/mt) to Rs26,500/mt ($363.26/mt) del Mandi Gobindgarh mill from Friday on improved demand for scrap. The index for Sponge iron settled flat at Rs25,200/mt del Mandi mill with limited deals. Some buyers found these prices unviable for purchases. In Ludhiana, the index for HMS 1&2 (80:20) fell by Rs500/mt to Rs27,500/mt, for busheling it declined by Rs150/mt to Rs30,600/mt delivered mill; while for Sponge iron, the index was down by Rs300/mt to Rs27,300/mt del mill.
The Indian steel market was largely quiet for most of January, which had also pressured domestic ferrous scrap prices. Amid a stand-off between steelmakers and end-users, trades had taken a hit. Some mills are thus facing a liquidity crunch due to a lack of bookings. But the market is showing signs of stability. Traders believe, a steep decline in prices in India seems to be unlikely in the short term.
In Turkey, seaborne scrap prices on Friday halted their fall with the Davis Index for US-origin HMS 1&2 (80:20) settling unchanged from Thursday. Exporters believe the country could be in the market again this week as it still requires are 20-25 cargoes for March shipment. Should Turkish mills raise their import prices, the international market, which was on a downtrend for the past couple of weeks, could start to strengthen again. Imported ferrous scrap offers in India could also thus increase in the coming days.
The bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs950/mt to Rs26,050/mt del Indore mill, and the index for Sponge iron fell by Rs200/mt to Rs25,300/mt del mill.
In South India, the bi-weekly index for HMS 1&2 (80:20) declined by Rs1,125/mt to Rs28,000/mt del Chennai mill, and the index for Sponge iron fell by Rs600/mt to Rs24,400/mt del mill amid limited activity.
In Hyderabad, the index for HMS 1&2 (80:20) declined by Rs900/mt to Rs25,600/mt del mill while the index for Sponge iron fell by Rs850/mt to Rs24,600/mt del mill. Demand for finished steel in the region remains muted. Mills thus continued to be in a wait-and-watch mode seeking clarity in price direction.
In Mumbai, the daily Davis Indices for HMS 1&2 (80:20) and Sponge iron settled unchanged at Rs26,000/mt and Rs24,925/mt delivered mill, respectively. Most sellers were unwilling to reduce offers on Monday. Market participants believe the domestic ferrous scrap market could end its downfall in the coming days. Infrastructure projects in Maharashtra and Gujarat are likely to aid steel demand and increase scrap trades.