In Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) rose by Rs750/mt ($9.99/mt) to Rs34,850/mt ($464.39/mt) del mill on Tuesday. Mills have focused on raising domestic scrap purchase volumes over imported scrap given the rising seaborne prices. Price for HMS 1&2 (80:20) remained flat at $420 on April 14, compared to April 8 which is unviable for the domestic mills. Moreover, restrictions on movement in Punjab have weighed down on demand.
The index for Sponge iron rose by Rs300/mt Rs32,100/mt del mill on Tuesday. State-owned miner, National Mineral Development Corporation (NMDC) raised its iron ore prices for lumps and fines by 18.80pc and 10.96pc, respectively, which has impacted the Sponge iron market.
In Ludhiana, the bi-weekly indexes for end-cutting and busheling rose by Rs600/mt to Rs37,600/mt and Rs37,900/mt del mill, respectively. The index for Sponge iron increased by Rs1,000/mt to Rs32,500/mt del mill.
The bi-weekly Davis Index for HMS 1&2 (80:20) and Sponge iron in Chennai settled flat at Rs 32,375/mt and Rs30,000/mt del mill. Tight domestic supply continues to keep the prices firm, while demand for finished steel is sluggish.
The daily Davis Index for HMS 1&2 (80:20) settled flat on Monday in Mumbai at Rs32,000/mt del mills and the index for Sponge iron rose by Rs500/mt to Rs29,700/mt del Mumbai mills. Steelmakers preferred to use Sponge iron as there is a shortage of ferrous scrap.
In Jalna, demand from the mills was low and offers reduced to Rs2000-2500/mt as mills issued a notice later in the day to the scrap suppliers for not loading any material till further notice, as they won’t be able to gas cut the oversized material which is to be melted in the furnaces due to the scarcity of oxygen cylinders. Consequently, the bi-weekly index for HMS 1&2 (80:20) decreased by Rs2000/mt to Rs30,000/mt del Jalna mills.