Domestic ferrous scrap prices in India continued their uptrend on Tuesday. Although domestic demand is picking up, it is lower than steelmakers’ expectations. Higher steel prices in India are supported by bullish global cues and rising semi-finished steel exports from India.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs750/mt ($10.22/mt) to Rs29,375/mt ($400.40/mt) del Chennai mill amid persisting domestic shortage. A few sellers raised offers to Rs30,000/mt del mill. Sellers have started booking imported scrap amid tight domestic supply. The index for Sponge iron rose by Rs1,100/mt to Rs27,500/mt del Chennai mill. A shortage of iron ore and strong global cues gave Sponge prices a lift. Manufacturers have raised offers as they believe prices will sustain.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs100/mt to Rs32,100/mt. The index for Sponge iron settled flat at Rs27,800/mt del mill. The bi-weekly index for busheling rose by Rs800/mt to Rs34,400/mt del Ludhiana mill, the index for HMS 1&2 (80:20) rose by Rs650/mt to Rs30,750/mt delivered mill; while the index for Sponge iron rose by Rs1,500/mt to Rs31,000/mt del mill.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt at Rs29,850/mt amid steady demand for finished and semi-finished steel. The index for Sponge iron rose by Rs200/mt to Rs27,600/mt amid improved demand.
In other markets, the bi-weekly index for HMS 1&2 (80:20) rose by Rs1,000/mt to Rs30,800/mt del Jaipur mill, while the index for Sponge iron rose by Rs1,500/mt to Rs29,900/mt del mill. In Hyderabad, the bi-weekly index for HMS 1&2 (80:20) rose by Rs1,000/mt to Rs28,700/mt del mill, while the index for Sponge iron rose by Rs700/mt to Rs27,450/mt del mill.
($1=Rs73.36)