Indian domestic ferrous scrap market took a breather on Thursday. Over the last two weeks, prices had increased by around Rs1,900/mt in the benchmark market in North India, Mandi Gobindgarh, making mills wary of trades. But a declining trend, as noted from Wednesday in the region could be short-term, and prices can gain again next week, believes a trader. Amid the ongoing farmer protests, freight rates in the area have increased.
The bi-weekly index for HMS 1&2 (80:20) fell by Rs1,100/mt to Rs30,450/mt del Ludhiana mill, while the index for Sponge iron settled unchanged at Rs30,050/mt del mill. The daily Davis Index for HMS 1&2 (80:20) registered an uptick of Rs200/mt ($2.73/mt) to Rs29,800/mt ($406.37/mt) del Mandi Gobindgarh mill, with limited deals reported at the index price. Buyers booked domestic material amid high imported scrap prices. The index for Sponge iron settled flat at Rs29,400/mt del mill, with no bids.
In Mumbai, the Davis Index for HMS 1&2 (80:20) declined by Rs200/mt to Rs29,550/mt, while the index for Sponge iron remained unchanged at Rs28,250/mt del mill, with a few deals at the index price. As scrap supply has started easing in the region, prices have come under pressure and declined by Rs450/mt from the prior Thursday.
In South India, the bi-weekly index for HMS 1&2 (80:20) and Sponge iron settled flat at Rs32,000/mt and Rs28,500/mt del Chennai mill. Trades were thin ahead of Pongal festivities. The market is likely to resume after January 18.
In other regions, the bi-weekly index for HMS 1&2 (80:20) dropped by Rs1,125/mt to Rs30,125/mt del Goa mill, on the back of slow finished steel demand.
In Jaipur, the bi-weekly Davis Index for HMS 1&2 (80:20) declined by Rs650/mt toRs29,100/mt del mill while the index for Sponge iron rose by Rs100/mt to Rs29,250/mt del mill.
($1=Rs73.33)