Domestic ferrous scrap prices climbed on Monday amid supply constraints. Mills limited procurement to immediate melt requirements on low demand from end-users. Sales of finished steel struggled under the stringent lockdown imposed in major cities.
Steel mills preferred domestic scrap over imported scrap to avoid transit time, additionally, offers for imported scrap were high, stated mills. The daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt ($6.85/mt) to Rs35,700/mt del Mandi Gobindgarh and the daily index for Sponge iron rose by Rs400/mt to Rs32,600/mt del mills.
For Mumbai, the daily Davis Index for HMS 1&2 (80:20) rose by Rs100/mt to Rs35,300/mt del Mumbai mills and the index for Sponge iron on Monday declined by Rs1,000/mt to Rs29,700/mt from Friday’s levels. Majority of mills have had to limit production due to the oxygen shortage and hence requirement for sponge iron is comparatively reduced than scrap.
Market participants are adhering to wait and watch mode till they get a clear price direction. With steel prices falling in China and on the contrary major importer of scrap, Turkey booking bulk shipments recently has left the Indian market players to have mixed opinions on price directions.