Indian domestic ferrous scrap prices were mixed amid low demand for raw material. Although finished steel prices have increased, a lack of demand is likely to pressure prices in the coming days.
The daily Davis index for HMS 1&2 (80:20) settled unchanged at Rs23,300/mt ($319.42/mt) del Mumbai while the index for sponge iron declined by Rs100/mt to Rs20,300/mt del Mumbai mills.
While demand for flat steel has increased with automobile companies ramping up production, it is still lower than pre-COVID-19 levels. On the other hand, sales of long steel remain tepid. It could take a few more weeks for construction activities to pick up and push steel demand up.
The bi-weekly index for HMS 1&2 (80:20) declined by Rs200/mt to Rs24,650/mt del Raipur but the index for sponge iron rose by Rs1,100/mt to Rs20,150/mt del Raipur mills.
In the South, the index for HMS 1&2(80:20) fell by Rs250/mt to Rs22,750/mt del Chennai mills and sponge iron rose by Rs300/mt to Rs20,300/mt del Chennai mills.
In North India, the daily Davis Index for HMS 1&2(80:20) declined by Rs100/mt to Rs22,600/mt del Mandi Gobindgarh. The index for sponge iron settled at Rs22,000/mt del Mandi Gobindgarh, down by Rs200/mt. Trades were thin as mills were waiting for finished steel demand to pick up.
With iron ore prices remaining firm, sponge iron prices surged in Durgapur. Sponge iron supply in most markets in India remained low adding to the prices. The index for sponge iron rose by Rs1,500/mt to Rs20,500/mt del Durgapur mill while the index for HMS 1&2(80:20) dropped by Rs500/mt to Rs24,500/mt del mill.