Prices for Indian domestic ferrous scrap trended mixed on Tuesday. In some parts of India, demand for scrap as well as Sponge iron came under pressure amid looming uncertainty over stringent lockdown measures. Indian New Year celebrations across the country also dampened the demand and slowed trade activities.
In Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) rose by Rs100/mt ($1.32/mt) to Rs35,150/mt ($466.82/mt) del mill on Tuesday. The prices had further risen in the latter part of Monday to Rs35,000-35,500/mt from Rs34,800-Rs35,300/mt del mill on a brief uptick in demand as the mills focused on raising domestic scrap purchase volumes. This happened due to stricter curfews imposed in the state which could also lead to production cuts at manufacturing plants, according to the manufacturers. But, on Tuesday, demand again came under pressure which impacted the prices. Supply, on the other hand, remains short.
The index for Sponge iron settled flat at Rs31,650/mt del mill on Tuesday. Limited transactions were reported at the current levels.
Offers for domestic ferrous scrap in Mumbai witnessed a decline amid a slowdown in production activity in the mills due to the lockdowlockdown restrictions and shortage of oxygen cylinders. The suppliers declined offers by 400-500/mt on Tuesday and the daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt to Rs32,000/mt del Mumbai mills. The index for Sponge iron remained flat at Rs29,400/mt del Mumbai mills as Sponge manufacturers in Bellary are on holiday as local new year festival is being celebrated.
Markets in Jalna, which is a steel hub of Maharashtra, showed an uptick in raw material prices due to prolonged shortage and firm demand from the steel mills. The bi-weekly index for HMS 1&2 (80:20) rose by Rs300/mt to Rs32,000/mt ex-Alang.
Ferrous scrap suppliers have also increased their offers in Ahmedabad, as the gas cutting activity has come to a halt giving rise to a shortage of material. The bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs32,200/mt del Ahmedabad mills.
The bi-weekly Davis Index for HMS 1&2 (80:20) dropped by Rs875/mt to Rs 32,375/mt del mill amid sluggish demand for finished steel. Holiday for Tamil new year celebrations also resulted in lower trade. The index for Sponge iron declined by Rs750/mt to Rs30,000/mt del mill.
Mills in Hyderabad were silent on Tuesday, deciding to wait-and-watch before procuring raw material. Hence, suppliers reduced their offers to attract the bids. The index for HMS 1&2 (80:20) declined by Rs500/mt to Rs30,000/mt del Hyderabad mills and the index for Sponge iron settled flat at Rs29,200/mt del Hyderabad mills.
($1=Rs74.32)