The Indian domestic ferrous scrap market on Tuesday continued to gain in most Indian regions. Market sentiment remained positive supported by a price rise in semi-finished and finished steel.
The bi-weekly Davis Index for HMS 1&2 (80:20) was at Rs25,000/mt ($341.02/mt) del Indore mill, up by Rs300/mt ($4.09/mt) from last Friday. The index for Sponge iron rose by Rs300/mt to Rs22,300/mt del mill.
In Raipur, the bi-weekly Davis Index for HMS 1&2 (80:20) was at Rs25,200/mt del mill, up by Rs50/mt from Friday last week. The index for Sponge iron rose by Rs200/mt to Rs19,500/mt del mill.
With India going into an unlock phase, demand for steel is on the recovery path. Many automakers are expected to ramp-up production ahead of Navaratri and Diwali festivals in late October and November. Thus, the market for ferrous scrap is unlikely to register a steep decline.
The daily indexes for HMS 1&2 (80:20) increased by Rs200/mt to Rs23,800/mt del Mumbai mill and Rs22,700/mt del Mandi Gobindgarh mill. The index for Sponge iron settled unchanged at Rs20,200/mt del Mumbai mill and up by Rs100/mt to Rs22,100/mt del Mandi Gobindgarh mill. Prices, however, did not surge as much considering the improved availability in the market.
In South India, the bi-weekly index for HMS 1&2 (80:20) declined by Rs300/mt to Rs22,700/mt del Chennai mill and the index for Sponge iron rose by Rs350/mt to Rs18,850/mt del mill.