In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose Rs100/mt ($1.36/mt) to Rs31,700/mt ($433.96/mt) del mill amid a tight supply of ferrous scrap and strong global cues. The prices rose by Rs400/mt in the second half of Thursday on a brief uptick in demand but failed to sustain on Friday.
Many suppliers refused to reduce prices for scrap amid strong Turkish purchases and bullish global cues. Container shortage, high freight charges have increased demand for domestic scrap in the past few weeks, thereby, supporting higher prices.
The index for Sponge iron rose by Rs300/mt to Rs28,100/mt del mill. Sponge producers raised offers amid rising international iron ore prices. The spot prices for iron ore, Thursday, remained firm at $178.8/mt cfr China, up by $2.8/mt compared to the prior week.
Sponge mills are focusing on the export of iron ore and Sponge iron pellets to achieve better margins on rising demand from China and other Asian countries. Amid high offers, mills opted for ferrous scrap over Sponge.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) settled flat at Rs29,850/mt on firm demand for finished steel. The domestic supply, however, remained tight. Trades expect mills to return to imported scrap bookings at current prices as domestic supplies dwindle.
Domestic ferrous scrap suppliers are expected to raise offers next week. Some buyers bid at Friday prices, but yards were reluctant to reduce offers. The index for Sponge iron in Mumbai rose marginally by Rs50/mt to Rs27,350/mt del mill amid slow demand.
($1=Rs73.52)