The prices for ferrous scrap and Sponge iron in India have maintained their uptrend. Mills in most regions are in wait-and-watch mode as prices for imported scrap and domestic scrap are unviable. The mills are left with no option but to hike finished steel prices to offset the rising input cost.
The bi-weekly Davis Index for HMS1&2 (80:20) rose by Rs950/mt ($12.911/mt) to Rs30,500/mt ($414.53/mt) del Jalna mill, backed by healthy demand from mills. The index for Sponge iron rose by Rs800/mt ($10.87/mt) to Rs27,950/mt ($379.9/mt) del mill with limited trades reported at those levels.
In South India, the bi-weekly index for HMS 1&2 (80:20) rose by Rs650/mt to Rs29,400/mt del Chennai mill following global cues. The index for Sponge iron rose by Rs600/mt to Rs28,000/mt del Chennai due to limited supply. A few trades were heard at the index price for both.
In the North, the daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt to Rs28,200/mt del Mandi Gobindgarh mill. The index for Sponge iron settled flat at Rs28,575/mt with no buying at those levels.
In Ludhiana, the index for HMS 1&2 (80:20) settled unchanged at Rs28,950/mt del mill and the index for Sponge iron rose by Rs200/mt to Rs28,700/mt del mill.
In Mumbai, the Davis Index for HMS 1&2 (80:20) rose by Rs500/mt Rs28,500/mt del mill. The index for Sponge iron registered an uptick of Rs650/mt to Rs28,350/mt del mill with a few deals reported at the index price.
In Indore, the bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs500/mt to Rs29,500/mt del mill and the index for Sponge iron increased by Rs800/mt to Rs28350/mt del mill.