Domestic ferrous price trends on Thursday were mixed. In the northern part of the country, prices for ferrous scrap increased amid an uptick in demand.

 

The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs250/mt ($3.38/mt) to Rs24,000/mt ($324.84/mt) del Ludhiana mill, while the index for sponge iron fell by Rs100/mt to Rs22,200/mt del mill. In Mandi Gobindgarh, the daily index for HMS 1&2 (80:20) rose by Rs100/mt to Rs22100/mt delivered mill, and the index for sponge iron fell by Rs300/mt to Rs21,800/mt del mill. The increase in prices was supported by a marginal rise in ingots.

 

Market participants, however, believe the rise could be temporary and demand is unlikely to sustain. Traders also stated that mills have raised offers citing a shortage of oxygen cylinders. But unless construction activities pick up, a sharp rise in finished steel and raw material prices seems unlikely.

 

In other parts of the country, scrap prices were under pressure. The bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs200/mt to Rs23,800/mt del Indore mill, while the index for sponge iron fell by Rs300/mt to Rs21,300/mt del mill. In Raipur, the bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs200/mt to Rs24,750/mt Raipur mill, while the index for sponge iron fell by Rs400/mt to Rs19,000/mt del mill. Restrictions akin complete lockdown have been imposed Raipur and nine other cities in the state of Chhattisgarh. This has hampered trades.

 

The daily Davis Index for HMS 1&2 (80:20) fell by Rs100/mt to Rs23,100/mt del Mumbai mill, while the index for sponge iron fell by Rs300/mt to Rs19,400/mt del mill. Amid low demand, trades were close to nil in the city.

 

In South India, he bi-weekly index for HMS 1&2 (80:20) was unchanged at Rs24,000/mt del Chennai mill, while the index for sponge iron fell by Rs300/mt to Rs20,200/mt del mill.

 

Market participants are eying mid-October when finished steel demand is expected to recover due to rising construction activity.

($1=Rs73.88)

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