Domestic ferrous scrap prices continued to rise further amid tight supply. Finished steel makers are still tapping the export markets and hiked their HRC prices by Rs3,700/mt ($50.69/mt).
The daily Davis Index for HMS 1&2 (80:20) rose by Rs700/mt ($9.59/mt) to Rs37,400/mt ($512.43/mt) del Mandi Gobindgarh, and the index for sponge iron rose by Rs500/mt to Rs33,700/mt delivered mills.
The bi-weekly index for HMS 1&2 (80:20) in Jaipur was at Rs35,700/mt delivered mill, up by Rs1,800/mt, and the index for sponge iron increased by Rs1,450/mt to Rs33,600/mt del mill after producers raised their asking rates in anticipation of a hike in input costs.
The bi-weekly Davis Index for End-cutting in Raipur was at Rs38,000/mt delivered mill, up by Rs750/mt, while the index for sponge iron was up by Rs1,250/mt to Rs31,100/mt del mill.
In Ludhiana, the bi-weekly Davis Index for busheling rose by Rs950/mt to Rs39,700/mt delivered mill, while the index for sponge iron was up by Rs700/mt to Rs33,650/mt del mill.
Mills in Mumbai bought raw material on a need basis, But a supply crunch gave the daily Davis Index for HMS 1&2 (80:20) a push up by Rs300/mt to Rs33800/mt del Mumbai mills, and the index for sponge iron rose by Rs800/mt to Rs30,500/mt delivered mills.
Steel mills in Goa have resumed production, but demand for the finished steel is still low. Mills thus bought ferrous scrap only to meet their daily production targets. The bi-weekly index for HMS 1&2 (80:20) rose by Rs1,500/mt to Rs32,500/mt del Goa, and the index for sponge iron rose by Rs2,500/mt to Rs31,000/mt delivered mills.
Traders expect ferrous scrap prices to increase further amid a supply crunch. Finished steelmakers also increased their prices due to the rise in iron prices OMC auction by Rs4,000/mt from the last auction held in March 2021.