Indian domestic ferrous scrap prices were mixed on Tuesday. Scrap and sponge iron prices in a few markets rose on the back of positive market sentiment amid expectations that Steel Authority of India could raise its semi-finished and finished steel prices. In the northern part of the country, however, steel production remains hit due to the COVID-19 outbreak and scrap prices continued to be under pressure.
The bi-weekly Davis Index for HMS 1&2 (80:20) settled at Rs20,500/mt ($271.26/mt) del Goa mill, up by Rs500/mt ($6.61/mt) from Thursday. The state is faring better in controlling the number of new COVID-19 cases than most others in the country. The index for sponge iron settled at Rs17,950/mt del mill, up by Rs250/mt from Thursday.
The financial capital of the country, Mumbai continued to grapple with the surge in virus cases and trades slowed down after mills refilled their inventories in the last two-three days. The daily index for HMS 1&2 (80:20) fell by Rs50/mt to Rs20,250/mt del mill but the index for sponge iron rose by Rs50/mt to Rs15,850/mt del mill.
In North India, the Mandi Gobindgarh market remained shut as the number of virus cases rose in the region. Still, a few mills booked scrap which will be loaded in the coming days. The index for HMS 1&2 (80:20) fell by Rs100/mt to Rs20,350/mt del mills with buyers refusing to accept higher offers. Production, especially that of ingots is likely to fall in the near term as markets and mills will stay shut over the weekend following a five-day week.
A spike in coal prices raised offers for sponge iron in the Durgapur market. The bi-weekly Davis Index for sponge iron settled at Rs15,400/mt del mill, up by Rs600/mt from Thursday. The index for HMS 1&2 (80:20) fell by Rs300/mt to Rs20,400/mt del mill.
In Indore, the bi-weekly index for HMS 1&2 (80:20) fell by Rs150/mt to Rs20,850/mt del mills. Both moderate demand and easing supply pressured scrap prices in the region. The index for sponge iron rose by Rs200/mt to Rs18,700/mt del mill.
The bi-weekly index for sponge iron in Ahmedabad declined by Rs500/mt to Rs16,975/mt del mill. Sponge makers in Bellary, who also supply to Gujarat lowered their offers as demand remains under pressure. The index for HMS 1&2 (80:20) fell by Rs150/mt to Rs20,850/mt del mill.
($1=Rs75.62)