Domestic ferrous scrap trades in India slowed down further on Thursday. Buyers are adopting a wait-and-watch mode as Turkish scrap import prices are falling. Importers in India have lowered their bids for scrap.
The bi-weekly Davis Index for HMS 1&2 (80:20) in Ahmedabad declined by Rs1,100/mt ($14.53/mt) to Rs21,000/mt ($277.45/mt) del mill from Tuesday, but buyers were not keen to trades these prices. A mill in Gujarat is offering billets at $370/mt fob India but exports have slowed down for the time being. A deal for 5,000mt of shredded is under negotiation with a UK-based seller. The seller is offering material at $270/mt cfr Nhava Sheva, but the mill expects prices to come down by $10/mt. The index for sponge iron rose by Rs75/mt to Rs17,475/mt del Ahmedabad mill.
In the North, markets were largely flat amid low or no buying. The bi-weekly Davis Index for HMS 1&2 (80:20) settled unchanged at Rs22,000/mt del Ludhiana mill and the index for sponge iron settled at Rs19,100/mt, also flat.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) settled at Rs19,000/mt del mill and the index for sponge iron settled at Rs15,900/mt del mill, both unchanged. A continued rise in COVID-19 cases and the onset of monsoon has kept trades subdued.
In Raipur, sponge iron sellers raised their offers as the market faces a shortage of ferrous scrap. The bi-weekly index for sponge rose by Rs650/mt to Rs15,650/mt del mill and the index for HMS 1&2 (80:20) settled unchanged at Rs22,150/mt del mill.
The Tamil Nadu government has imposed severe lockdown restrictions in Chennai and the surrounding region, which is expected to hinder the movement of people and goods till June 30. The Chennai market remained shut and the indexes for HMS 1&2 (80:20) and sponge iron both settled flat at Rs21,000/mt and Rs16,300/mt del mill, respectively.
In Durgapur, a lack of consensus between buyers and sellers impacted trades. The bi-weekly indexes for HMS 1&2 (80:20) settled at Rs22,700/mt del mill, up by Rs400/mt and sponge iron settled at Rs14,800/mt del mill, unchanged. Buyers refused to pay more than Rs22,300-22,500/mt for scrap delivered to mill and thus no trades materialised.