Indian domestic ferrous scrap prices trended flat to up on Thursday while Sponge prices lost their steam and remained flat.
In Mumbai, the daily index for HMS 1&2 (80:20) and Sponge settled flat at Rs30,000/mt ($410.67/mt) and Rs27,950/mt ($382.61/mt) del mill respectively, but the scrap prices are likely to increase by Rs3,000/mt in January 2021, according to a few market participants.
The daily Davis Index for HMS 1&2 (80:20) and Sponge remained unchanged at Rs29,600/mt del Mandi Gobindgarh mill and Rs29,400/mt, respectively, with thin trades.
In Ludhiana, the bi-weekly index for HMS 1&2 (80:20) rose by Rs550/mt from Tuesday to Rs31,550/mt delivered mill and the index for Sponge iron settled unchanged at Rs29,500/mt del mill.
In Indore, the bi-weekly index for HMS 1&2 (80:20) and Sponge iron settled unchanged on new year’s eve from Tuesday at Rs30,300/mt del mill and Rs28,000/mt del mill, respectively. Many mills believe the market is likely to remain firm for the next 15 days. But fear of a possibility of a crash like in 2008 is making those in the MSME sector tread with caution and adopt a ‘just-in-time’ inventory strategy.
In South India, the bi-weekly index for HMS 1&2 (80:20) and Sponge iron settled flat at Rs32,000/mt del Chennai mill and Rs28,500/mt, respectively, amid weak demand for finished steel. Limited trades were reported at the index price.
The index for HMS 1&2 (80:20) rose by Rs950/mt to Rs28,850/mt del Hyderabad mill while the index for Sponge iron settled unchanged at Rs27,950/mt del mill. Unconfirmed news about Tata Tiscon raising semi-finished steel prices was making rounds in the market. The move could impact billet and ingot prices in the coming days.