Domestic ferrous scrap prices in India continued to rise Tuesday as steel prices in the country strengthened. Most steelmakers have hiked their prices for HRCs, billets, and other finished and semi-finished steel products which supported scrap trades.
A shortage of material in some markets, like Indore, also gave scrap prices a lift. The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs300/mt ($4) from Thursday to Rs23,000/mt ($306.38/mt) del Indore mill and the index for sponge iron rose by Rs400/mt to Rs21,000/mt del mill.
In Ludhiana, the bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs23,000/mt delivered mill, and the index for sponge iron settled at Rs20,300/mt delivered mill, up by Rs 150/mt from Thursday last week. With the steel prices and demand picking up, a mill owner says the bullishness in scrap prices did not deter trades, but whether the prices will remain firm in the coming days remains to be seen.
The daily Davis Indexes for HMS 1&2 (80:20) rose by Rs500/mt to Rs22,500/mt del Mumbai mill and Rs200/mt to Rs21,300/mt del Mandi Gobindgarh mill. The index for sponge iron in Mumbai fell by Rs50/mt to Rs18,550/mt delivered mill, in Mandi, however, it rose by Rs200/mt to Rs19,900/mt del mill. A bullishness in imported scrap prices in most Asian markets drove the prices upwards.
In South India, the bi-weekly index for sponge iron fell by Rs300/mt to Rs18,200/mt del Chennai mil and the index for HMS 1&2 (80:20) declined by Rs500/mt to Rs22,000/mt del Chennai mill. Most mills have refilled material and stayed away from buying prompting suppliers to reduced offers.