For yet another day, prices for domestic ferrous scrap in India continued to rise. Most regions in the country are dealing with a shortage of ferrous scrap, which is driving prices up.
In the North, Sponge iron remained firm amid iron ore scarcity and the resulting rise in prices. The index for Sponge iron rose by Rs650/mt ($8.75/mt) to Rs24,000/mt ($323.08/mt) del Mandi Gobindgarh mill. The index for HMS 1&2 (80:20) increased by Rs300/mt to Rs23,900/mt del Mandi Gobindgarh mill. Since last two weeks, protests against the proposed farm bill in India is gathering steam. As a result, the movement of around 97 goods carrier trains was affected, increasing logistic charges and consequently offers for domestic scrap. Bullish global cues also supported prices despite weak finished steel demand.
The bi-weekly indexes for HMS 1&2 (80:20) and Sponge iron rose by Rs250/mt to Rs25,250/mt del Ludhiana mill and Rs25,000/mt delivered mill, respectively. The price difference between billets in Ludhiana and Mandi Gobindgarh has narrowed to Rs400/mt from the usual double amount, with Mandi Gobindgarh showing a steeper rise. Traders, therefore, believe many could choose to sell more volume in Mandi instead of Ludhiana, exacerbating the supply situation in the latter.
The Punjab Goods and Services Tax (GST) department raided 50 firms, which has impacted trades in the region.
In South India, the index for Sponge iron increased by Rs500/mt to Rs22,100/mt del Chennai and the index for HMS 1&2 (80:20) rose by Rs250/mt to Rs24,000/mt del Chennai on Thursday.
In Hyderabad, the bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs25,500/mt delivered mill, while the index for Sponge iron increased by Rs600/mt to Rs21,900/mt del mill.
In Durgaput, the bi-weekly index for HMS 1&2 (80:20) decreased by Rs500/mt to Rs25,500/mt del mill. Sponge iron exports to Bangladesh have increased, impacting its availability and prices in the domestic markets. The index for Sponge iron rose by Rs200/mt to Rs21,400/mt del mill.
In Jalna, the bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs25,000/mt del mills amid healthy demand rebar sales.
In Mumbai, the daily index for HMS 1&2 (80:20) rose by Rs600/mt to Rs24,550/mt del mill and the index for Sponge iron increased by Rs300/mt to Rs22,100/mt del mill.