Indian domestic ferrous scrap prices rose in the North with the daily Davis Index for HMS 1&2 (80:20) up by Rs350/mt ($4.6/mt) to Rs19,350/mt ($256.28/mt) del Mandi Gobindgarh mill. Demand for scrap recovered as a few rolling mills in Mandi resumed production. The daily Davis Index for sponge iron declined by Rs175 to Rs18,400/mt del Mandi Gobindgarh mill.
In Jalna, the index for HMS 1&2 (80:20) fell by Rs50/mt to Rs21,950/mt del mills. Market participants adopt a wait-and-watch approach as the nationwide lockdown is likely to be extended in some areas of Maharashtra. This has built-in negative sentiments in the region, resulting in low trades. The index for sponge iron in Jalna declined by Rs56/mt to Rs19,657/mt del mills.
In Mumbai, the daily Davis Index for HMS 1&2(80:20) rose by Rs395/mt to Rs21,670/mt del mills. Finished steelmakers focused on exports as domestic demand is yet to pick up due to a halt in construction activities. The daily Davis Index for sponge iron in Mumbai fell by Rs100/mt to Rs17,600/mt del mills.
In Chennai, the index for HMS 1&2 (80:20) settled flat at Rs19,850/mt and the index for sponge iron declined by Rs175/mt to Rs17,275 del mills. Traders refrained from buying scrap as demand for finished steel has diminished from the local market.
In Raipur, the index for HMS 1&2 (80:20) rose by Rs350/mt to Rs21,850/mt del mills on increase in demand for finished steel as traders are stocking up and expecting prices to rise in the near term. The government’s initiatives to support small and medium enterprises will enable steel mills to crank up their operations and generate demand for scrap and sponge iron over the near term. The index for sponge iron in Raipur declined by Rs150/mt to Rs15,400/mt del mills.