Mandi Gobindgarh is largely facing the brunt of farmer’s agitation with a bearing on prices. Thus, the daily Davis Index for HMS 1&2 (80:20) rose by Rs700/mt ($9.50/mt) to Rs27,000/mt (366.39/mt) del Mandi mill, while the index for Sponge iron registered an uptick of Rs100/mt to Rs28,250/mt del mill. The momentum of gain in Sponge prices seems to have slowed despite bullish iron ore prices.
In Mumbai, the index for HMS 1&2 (80:20) settled unchanged at Rs27,500/mt del mill while the index for Sponge iron increased Rs200/mt to Rs26,800/mt del mill. Amid bullish imported scrap and domestic scrap prices, mills might opt for Sponge iron in the coming weeks, should the prices soften.
Most primary steelmakers in the country have been raising their finished steel prices, instilling a positive sentiment in the market. However, at the current price levels, stockists and end-users have slowed down purchases. Some market participants believe, if demand does not rev up as expected, it could pressure prices.