Indian domestic ferrous scrap prices remained firm on Thursday ahead of a long weekend on account of Gandhi Jayanti holiday on Friday. Demand from mills is gradually picking up in the North, pulling HMS prices up.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt ($4.10/mt) to Rs21,700/mt del Mandi Gobindgarh, with a few trades heard at the index price. The daily Davis Index for sponge iron settled at Rs21,000/mt del Mandi Gobindgarh.
Mills in the eastern part refrained for buying due to low demand from domestic markets. The bi-weekly index for HMS 1&2 (80:20) settled flat at Rs24,500/mt del Durgapur mills, and the index for sponge iron declined by Rs100/mt to Rs18500/mt del Durgapur .
Primary steel producers are in talks to increase HRC prices by Rs1,500-2,000 /mt in October, however, mills are buying raw material in staggered manner keeping prices firm.
The bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs23,300/mt del Jalna mill and trades were thin on Thursday.
The daily Davis index for HMS 1&2 (80:20) rose by Rs100/mt to Rs22,900/mt del Mumbai mills while the index for Sponge iron declined by RS400/mt to Rs18,300/mt del Mumbai mills. Few trades were reported in Mumbai at the index price.
Sponge manufacturers in Bellary lowered their offers due to low demand from the mills and offers were in the range of Rs17,200-17,300/mt ex-Bellary.
Mill owners are expecting demand to increase from the auto manufacturers in this quarter which could push the demand for ferrous scrap.
The index for HMS 1&2 (80:20) settled flat in Goa at Rs23,000/mt del mills while the index for sponge iron declined by Rs500/mt del Goa mills to Rs 18,200/mt.
As per traders, imports are still under pressure and would recover once the demand from auto and infrastructure sector picks-up.