Indian domestic scrap prices continued to rise on Thursday aided by an increase in finished and semi-finished steel prices. Bullish sentiment in the global steel and ferrous scrap market also aided prices.
In Ludhiana, the bi-weekly indexes for busheling rose by Rs2,200 /mt ($30.03/mt) from Tuesday to Rs36,500/mt ($498.07/mt) del mill, End cuttings rose by Rs2,000/mt to Rs36,000/mt del mill; while that for Sponge iron rose by Rs200/mt to Rs30,800/mt del mill. A persisting shortage of scrap has given prices a lift.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt to Rs34,350/mt del mill. Buyers are still exercising caution amid GST related issues although the strike has been called off, cited steelmakers. The index for for Sponge iron rose by Rs300/mt to Rs30,000/mt with limited activity reported.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs1,125/mt to Rs 32,250/mt del Chennai mill. Bullish imported scrap offers and a rise in freight rates due to container has also supported domestic scrap prices. The index for Sponge iron increased by Rs1,350/mt to Rs28,500/mt del mill due to a rise in iron ore pellet prices. Tighter availability of iron ore lumps also supported pellet price hike.
In Mumbai, the daily index for HMS 1&2 (80:20) settled unchanged at Rs30,800/mt del mill while the index for Sponge iron was at Rs28,200/mt del mill, up by Rs200/mt. Maharashtra is set to take a decision regarding imposing a stringent lockdown on Friday. Ahead of the decision, steelmakers stayed away from making purchases.
In other markets, the bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs31,500/mt del Jaipur mill; while the index for Sponge iron rose by Rs1,050/mt to Rs31,750/mt del mill.