Domestic ferrous scrap prices remained firm in India due to tight supply. Mills were seen buying on a need basis. Sales of finished steel were low due to the lockdown and sponge iron prices moved southwards as furnaces are running at 50pc production capacity.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs36,800/mt ($504.1/mt) del Mumbai mills. Trades were low for two days due to the fear of cyclone in the coastal areas. The daily Davis Index for sponge iron declined by Rs700/mt to Rs31,100/mt del mills.
Markets in Southern India witnessed supply shortage of ferrous scrap and the bi-weekly index for HMS 1&2 (80:20) rose by Rs400/mt to Rs34,800/mt del Chennai mills. The index for sponge iron declined by Rs800/mt to Rs31,400/mt del mills.
Mills in Durgapur are following a wait-and-watch approach before procuring raw material in absence of a clear price direction.
The bi-weekly index for HMS 1&2 (80:20) settled flat to Rs36,000/mt del Durgapur mills and the index for sponge iron declined by Rs2,000/mt to Rs29,000/mt del Mills. Stringent lockdown has impacted the sales for finished steel. A few mills are tapping the export markets.
Markets in the North saw fall in ingot prices amid low demand from the end-users. The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt to Rs37,600/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs900/mt to Rs33,000/mt del mills.
Few mills in Goa were shut since last eight days due to supply shortage of oxygen cylinders, hence ferrous scrap suppliers reduced their offers to attract bids. The bi-weekly index for HMS 1&2 (80:2) declined by Rs500/mt to Rs32,000/mt del Goa mills and the index for sponge iron declined by Rs800/mt to Rs31,200/mt del mills.
The steel hub of Maharashtra, Jalna, also saw a decline in demand hence limited trades were witnessed on Tuesday. The bi-weekly index for HMS 1&2 (80:20) settled flat at Rs37,000/mt del Jalna mills.
In Alang, markets remained closed for the second consecutive day amid strong winds and disruptions caused by cyclone Tauktae. The indexes for shipbreaking scrap remain unchanged from Friday.
Domestic market participants are waiting to get a clear price direction, however, international scrap prices are firm and there is still room for Indian finished steel makers to increase prices.