In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs600/mt ($8.15/mt) to Rs32,000/mt ($445.07/mt) amid persisting scrap shortage and a gradual rise in demand for finished steel. Mills expect prices to rise further in the near term on limited supply of imported scrap.
The price for HMS 1&2 (80:20) cfr Turkey rose by $1.72/mt to $455.15 on Feb 26, compared to the prior day, with offers in the range of 455-460/mt cfr Turkey on Monday. Most suppliers thus raised offers for subcontinental buyers. Elevated freight rates amid container shortage also added to the landed cost of imported material. Mills thus opted for domestic scrap.
The Davis Index for Sponge iron rose by Rs200/mt to Rs27,800/mt del Mandi Gobindgarh mill. Steelmakers preferred ferrous scrap over Sponge. Still, manufacturers are unwilling to reduce offers amid rising iron ore prices globally. Spot prices for Fe scrap remained firm at $176/mt cfr China on Monday, a 10-year high, said market participants.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) rose by Rs350/mt at Rs29,350/mt amid steady demand for finished and semi-finished steel. Like in Mandi, supply of domestic ferrous scrap remained tight in Mumbai too and suppliers could raise offers further this week. Some buyers bid at Friday prices, but sellers resisted amid strong global cues. Larger mills showed willingness to raise bids by Rs300-500/mt on Monday. The index for Sponge iron rose by Rs200/mt to Rs27,800/mt delivered Mumbai mill amid improved demand.
($1=Rs73.52)