Domestic ferrous scrap prices were up in Mandi Gobindgarh amid tight supply and rise in ingot prices. Mills were buying on a need basis and the daily Davis index for HMS 1&2 (80:20) rose by Rs300/mt ($4.09/mt) from Friday to Rs37,800/mt del Mandi Gobindgarh. The index for sponge iron rose by Rs300/mt to Rs33,900/mt del mills.
Trades were low in the Western India due to disruption caused by cyclone Tauktae. Transportation has come to a halt and lockdown restrictions have been extended, which made mills wary of procuring more raw material.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt to Rs36,800/mt del Mumbai mills and the index for sponge iron declined by Rs400/mt to Rs31,800/mt del Mumbai mills.
Market participants still expect steel prices to increase in the near term as international steel prices are higher as in Indian. Shortage of ferrous scrap persist in the domestic markets which might keep prices firm .
Shipbreaking in Alang
Yards in Alang were closed on Monday due to the cyclone. Indexes remained unchanged. Market participants said the yards could remain shut even on Tuesday, till the storm weakens.