Prices for domestic ferrous scrap in India were under pressure in all the regions except the North. A call for strike by traders over GST documentation issues has paused trades in the benchmark Mandi Gobindgarh market. Traders refrained from disclosing the prices for ferrous scrap for yet another day. With activities in the market coming to a standstill, the daily Davis Index for HMS 1&2 (80:20) and Sponge iron settled unchanged at Rs32,550/mt ($448.88/mt) and Rs28,600/mt ($394.40/mt) del Mandi mill, respectively.
The strike was supposed to end on Thursday, but market participants could extend it indefinitely. A decision in this regard is likely to be out by late evening on Thursday.
In Ludhiana, the bi-weekly index for busheling and End cutting registered an uptick of Rs100/mt from Tuesday to settle at Rs34,500/mt and Rs34,300/mt delivered mill, respectively. The index for Sponge iron was at Rs31,100/mt, unchanged from Tuesday. Market participants state traders tried to seize the opportunity and raised offers citing the Mandi strike. But only limited tonnages sold as only mills with urgent requirements were in the market. Demand for scrap could remain subdued for the rest of March.
In South India, the bi-weekly Davis Index for HMS 1&2 (80:20) settled flat at Rs29,375/mt del Chennai mill despite a shortage of scrap. Although asking prices were heard at Rs30,000/mt, bids were mostly at Rs29,500-29,800/mt del mill. Finished steel demand continued to remain weak. The index for Sponge iron declined by Rs1,050/mt to Rs25,800/mt del Chennai mill.
In Mumbai, the daily indexes for HMS 1&2 (80:20) and Sponge iron settled unchanged at Rs28,000/mt and Rs26,500/mt delivered mill, respectively. Experts state a second wave of the COVID-19 pandemic has started to begin in the state of Maharashtra. The government could, therefore, tighten restrictions along with ramping up immunization efforts. A possibility of stringent movement curbs dampened the market sentiment.
In other bi-weekly priced markets, the index for HMS 1&2 (80:20) settled at Rs30,700/mt del Jaipur mill, down by Rs600/mt; while Sponge iron was unchanged at Rs30,000/mt del mill. The index for HMS 1&2 (80:20) settled at Rs29,700/mt delivered Ahmedabad mill, down by Rs100/mt; while the index for Sponge iron was at Rs26,700/mt delivered mill, also down by Rs100/mt.