Domestic ferrous scrap prices in India gained strength on Tuesday amid hopes of primary steelmakers raising rebar prices in the coming days. Supply of material also remains low which has supported prices. Many secondary mills opted for sponge iron purchases to cope with limited ferrous scrap availability.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt ($6.72/mt) to Rs36,000/mt ($484.28/mt) del Mumbai mill, while the index for sponge iron increased Rs300/mt to Rs31,900/mt del mill. In Mandi Gobindgarh, the daily index for HMS 1&2 (80:20) rose Rs400/mt to Rs36,600/mt del mill and the index for sponge iron increased Rs1,000/mt to Rs36,200/mt del mill.
In Jalna, effective Aug 16, buyers will bear the material loading charges of Rs120/mt which will lift ferrous scrap prices. The bi-weekly index for HMS 1&2 (80:20) rose by Rs1,200/mt from last Thursday to Rs35,700/mt del Jalna mill while the index for sponge iron settled up by Rs800/mt to Rs34,600/mt del mill.
Despite slow finished steel sales, sentiment in the domestic market is bullish on hopes of demand recovery in the coming days as the monsoon season nears its end.