Domestic ferrous scrap and Sponge iron prices in India rose on Tuesday with indications of firm semi-finished and finished steel markets for the coming days. The state of Haryana in India has sealed borders to prevent the ‘Delhi Chalo’ protest by farmers from aggravating further. The rising logistic costs have impacted steel raw material prices in the region, with some reverberations across the country.
In Ludhiana, the bi-weekly index for HMS 1&2 (80:20) increased by Rs1,300/mt ($17.65/mt) from last Thursday to Rs27,000/mt ($366.52/mt) del mill, while the index for Sponge iron rose by Rs600/mt to Rs28,200/mt del mill. The daily Davis Index for HMS 1&2 (80:20) rose by Rs600/mt to Rs25,700/mt del Mandi Gobindgarh mill while the index for Sponge increased by Rs150/mt to Rs27,000/mt del mill.
A shortage of iron ore persists in India, which has been impacting not only Sponge iron prices but also that for ferrous scrap. Market participants believe it could take a month for the supply to regularise since a few mines in Orissa have recently started operations after the auctions early this year.
In other markets, the index for HMS 1&2 (80:20) increased by Rs950/mt to Rs28,000/mt del Indore mill, while the index for Sponge iron rose by Rs1,100/mt to Rs27,000/mt del mill. In Jaipur, the index for HMS 1&2 (80:20) increased by Rs1,100/mt to Rs26,300/mt delivered mill, and for Sponge iron rose by Rs600/mt to Rs27,300/mt del mill.
The bi-weekly index for HMS 1&2 (80:20) increase by Rs2,200/mt to Rs26,700/mt del Jalna mill amid a rise in finished steel and imported scrap prices. Mills preferred to stock material before offers from overseas become scarce, and prices rise further. The index for Sponge iron rose by Rs900/mt to Rs25,050/mt del Jalna mill.
In South India, the bi-weekly index for HMS 1&2 (80:20) rose by Rs950/mt to Rs26,500/mt del Chennai mill, backed by healthy demand from mills. The index for Sponge iron rose by Rs1,200/mt to Rs26,000/mt del Chennai.
In Mumbai, the Davis Index for HMS 1&2 (80:20) rose by Rs500/mt to Rs26,000/mt del mill while the index for Sponge iron increased by Rs900/mt to Rs26,200/mt del mill.