Prices of domestic ferrous scrap remained mixed on Friday as mills preferred to book material in a staggered manner. The index for HMS 1&2 (80:20) rose by Rs200/mt ($2.72/mt) to Rs22,300/mt del Mandi Gobindgarh. The index or sponge iron settled flat at Rs22,500/mt del Mandi mills.
Supply of scrap in the domestic markets is scarce and mills have adopted a wait-and-watch approach till demand from the end-users picks up. Imported HMS prices declined by $8/mt $296/my cfr India port in a single day as buyers reduced their offer and are not willing to pay above $300/mt.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt to Rs23,500/mt del Mumbai mills. The index for sponge iron declined by Rs100/mt to Rs19,900/mt del Mumbai mills.
Mill owners are also keeping a watch on the rising number of COVID-19 cases in India. Steel companies are diverting medical oxygen from their plants to various hospitals which is expected to hamper production at steel mills.
Traders expect scrap prices to pick-up ahead of festive season as the automobile sector – a major consumer of steel — has increased production to fulfill new orders.