Domestic ferrous scrap prices in India were flat to up in most markets on Thursday despite subdued demand.
Traders in Mandi Gobindgarh have called for a strike amid a stand-off with the government over GST documentation. Most are staring at hefty penalties over alleged irregularities in invoices. The daily Davis Index for HMS 1&2 (80:20) and Sponge iron settled flat at Rs31,275/mt and Rs27,600/mt del Mandi Gobindgarh mill, amid limited trades.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs28,000/mt ($385/mt) del mill and the index for Sponge iron rose by Rs100/mt ($1.37/mt) to Rs26,700/mt ($367.38/mt) del mill. The market remained largely silent due to a bank holiday on account of the religious festival of Maha Shivratri but the impact of a rise in Mandi Gobindgarh’s ingot prices kept prices from slipping.
Although seaborne scrap prices in India are under pressure, the supply of domestic material remains short. The low availability of domestic scrap gave prices a lift in some markets.
The bi-weekly Davis Index for HMS 1&2 (80:20) settled flat at Rs30,000/mt del Chennai mill. Buyers cited uncertain market conditions and stayed away from new purchases. Some are waiting for prices to fall before restocking. The index for Sponge iron fell by Rs150/mt to Rs26,850/mt del Chennai mill. The bi-weekly index for HMS 1&2 (80:20) and End cutting rose by Rs200/mt to Rs28,000/mt and Rs29,500/mt del Hyderabad mill, respectively; while the index for Sponge iron fell by Rs250/mt to Rs26,600/mt del mill.
In other markets, the bi-weekly index for HMS 1&2 (80:20) rose by Rs800/mt to Rs31,000/mt del Jaipur mill, while the index for Sponge iron settled unchanged at Rs29,300/mt del mill. In Ludhiana, the bi-weekly index for busheling settled unchanged at Rs33,500/mt delivered mill, and the index for Sponge iron settled at Rs30,400/mt delivered mill, also flat.