Domestic ferrous scrap prices remained firm Tuesday amid tight supply. Mills are on a wait and see mode and procuring scrap only on a need basis.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt($4.04/mt) to Rs36,000/mt del Mumbai mills and the index for sponge iron rose by Rs100/mt to Rs31,500/mt del mills.
Mills in Jalna saw tepid demand from the end-users, which made ferrous scrap suppliers reduce their offers to attract bids. The bi-weekly index for HMS 1&2 (80:20) declined by Rs1,800/mt to Rs35000/mt del Jalna mills and the index for sponge iron rose by Rs400/mt to Rs33,100/mt del mills.
Steelmakers in Durgapur were also seen buying on a need basis and the bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs35,500/mt del Durgapur mills and the index for sponge iron rose by Rs500/mt to Rs31,200/mt del mills.
Markets in the South witnessed a tight supply of ferrous scrap, the bi-weekly index for HMS 1&2 (80:20) rose by Rs400/mt to Rs33,000/mt del Chennai mills and the index for sponge iron rose by Rs200/mt to Rs30,800/mt del mills.
Primary steelmakers are expected to increase their TMT prices by Rs1,000-1,500/mt from August 5th onwards, informed sources to Davis, as there is low availability of finished steel inventories.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt to Rs36,500/mt del Mandi Gobindgarh as demand from the ingot makers declined. The index for sponge iron rose by Rs300/mt to Rs35,500/mt del mills.
Shipbreaking scrap prices in Alang remained unchanged on Tuesday as the strike continued, this will lead to production cut due to the piled up inventories, said shipbreakers.
($1=Rs74.25)