Domestic ferrous scrap prices in most Indian markets either settled unchanged or rose on Tuesday. A persisting shortage of material has kept prices firm in the market. But the bullishness in global ferrous scrap and steel markets has kept demand stable for domestic material.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs2,000/mt ($27.58 /mt) to Rs28,500/mt ($393.14/mt) del Chennai mill amid global cues and domestic supply crunch. The index for HMS 1&2 (80:20) rose by $10/mt from Feb 19 to $435/mt cfr Turkey in Monday making imports. Offers for imported HMS 1&2 (80:20) in Chennai have increased by $25-30/mt in a week to $410-415/mt cfr Chennai making imports unviable. Container shortage and vessel delays have also exacerbated importers’ woes. The index for Sponge iron rose by Rs1,150/mt to Rs27,000/mt del Chennai mill.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs31,300/mt delivered mill. Demand slowed due to increased spread of COVID-19. Fearing a further decline in prices, traders reduced their asking prices. The index for P&S fell Rs600/mt to Rs32,500/mt del mill, while the index for Sponge iron settled unchanged at Rs26,750/mt.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs28,500/mt amid tight supply but sluggish demand. The index for Sponge iron fell by Rs150/mt to Rs26,400/mt amid slow demand.
In other markets, the bi-weekly Davis Index for HMS 1&2 (80:20) settled unchanged at Rs29,200/mt del Jaipur mill, while the index for Sponge iron was at Rs27,900/mt; up by Rs300/mt.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose Rs600/mt to Rs29,600/mt del Indore mill, while the index for Sponge iron was at Rs26,300/mt; down by Rs700/mt.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose Rs600/mt to Rs30,100/mt del Ludhiana mill, while the index for Sponge iron was at Rs28,900/mt; up by Rs300/mt.
($72.49/mt)