Indian domestic ferrous scrap prices fell on Tuesday as 15 China cities were locked down due to the Coronavirus outbreak.
Global and domestic demand for steel scrap also remained low due with the extension of Chinese new year’s holidays till first week of Feb.
The daily index for sponge iron del Mandi Gobindgarh rose by 2,000/mt to Rs2,2700/mt. Indian finished steel buyers are bearish on demand till the Coronavirus threat subsides. Scrap trades are likely to slow down till the announcement of the union budget on Feb 1.
In northern India, the Davis Index for HMS 1&2 (80:20) fell by Rs450/mt($6.3/mt) to Rs22,750/mt del Ludhiana. Sponge iron settled flat at Rs22,525/mt del Ludhiana. The index for HMS 1&2 (80:20) rose by Rs150/mt to Rs22,550/mt del Mandi on Tuesday.
The index for HMS 1&2 (80:20) and sponge iron fell by Rs300/mt to Rs23,400/mt and Rs20,825/mt del Indore, respectively, as compared to the prices on Jan 24.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs200/mt to Rs23,000/mt del Mumbai mills, driven by a decrease in demand for billets and the index for billet fell by Rs350/mt to Rs31700/mt del Mumbai mills. The index for sponge iron in Mumbai settled at Rs20,450/mt, flat from Monday.
The index for HMS 1&2 (80:20) fell by Rs175/mt to Rs23,325/mt del Chennai, and sponge iron by Rs617/mt to Rs20,600/mt del Chennai.
Demand for finished steel is likely to increase post the union budget announcement. Expectations of duty cuts for scrap and a hike in finished steel prices could give ferrous scrap prices a further lift.