Domestic ferrous scrap availability is tight in West and East India. Mills were thus unable to procure raw material from the domestic market. Due to weak domestic demand for steel, many decided to wait for clarity in price direction before they book imported scrap.
The bi-weekly index for HMS 1&2 (80:20) rose by Rs1,000/mt ($13.72/mt) to Rs35,000/mt del Jalna mills and the index for sponge iron declined by Rs200/mt to Rs33,200/mt del mills.
Demand from steel end-users is still low, and large-scale mills continued to focus on exports. The daily Davis index for HMS 1&2 (80:20) settled unchanged at Rs34,000/mt del Mumbai mills, while the index for sponge iron declined by Rs350/mt delivered mills.
The bi-weekly index for HMS 1&2 (80:20) rose by Rs1,000/mt to Rs37000/mt del Durgapur mills, and the index for sponge iron declined by Rs200/mt to Rs30,000/mt delivered mills.
Ingot prices in Mandi Gobindgarh declined because of low demand from the mills as sales for finished steel have dipped. Ferrous scrap suppliers thus reduced offers to boost sales, and the daily Davis Index for HMS 1&2 (80:20) declined by Rs700/mt to Rs37,000/mt del Mandi Gobindgarh, the index for sponge iron settled flat at Rs34100/mt delivered mills.
Market participants expect prices to increase in the near term as there is a shortage of ferrous scrap in the local market. They expect pent-up demand from end-users once the lockdown restrictions ease.
The bi-weekly index for HMS 1&2 (80:20) rose by Rs1,000/mt to Rs33,500/mt del Goa mills, and the index for sponge iron declined by Rs200/mt to Rs30,800/mt delivered mills.
The bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs35000/mt del Chennai mills, and the index for sponge iron rose by Rs200/mt to Rs30,900/mt delivered mills. Tight supply and rise in demand from mills looking to fulfill export orders gave prices a lift.
($1=Rs72.87)