In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs450/mt ($5.99/mt) to Rs34,800/mt ($464.39/mt) del mill on Thursday. Supply of domestic scrap is still tight. Mills focused on raising purchase volumes of domestic scrap as they found imported scrap prices too high. Price for HMS 1&2 (80:20) was $423/mt cfr Nhava Sheva on April 21. Strict lockdown guidelines in the state of Punjab also impacted demand.
The daily index for sponge iron rose by Rs625/mt Rs32,125/mt del Mandi Gobindgarh mill on Thursday as some mills preferred to opt for sponge iron because of tight domestic scrap supply. A few deals were heard at the current levels.
Mills in Jalna were eagerly looking for domestic scrap, but stayed away from buying oversized material as cutting process has taken a hit due to the shortage of oxygen cylinders. The index for HMS 1&2 (80:20) rose by Rs500/mt to Rs33,000/mt del Jalna mills.
Markets in Mumbai settled flat on Thursday amid low finished steel sales.The index for HMS 1&2 (80:20) settled unchanged at Rs31,000/mt del Mumbai mills and the index for sponge iron declined by Rs300/mt to Rs29,700/mt del mills.
The bi-weekly Davis Index for HMS 1&2 (80:20) declined by Rs500/mt to Rs34,000/mt del Chennai mill from Tuesday due to weak finished steel demand. Mills are closely watching Turkish deals due to volatility in the imported scrap prices. Price for HMS 1&2 (80:20) US-origin cfr Turkey was $426.47/mt del mills on April 21, compared to $420.65/mt on April 20. The index for sponge iron dropped by Rs100/mt to Rs29,500/mt del mill with limited deals.
Mills are now tapping export markets as domestic sales are low due to the stringent lockdown measures taken by the government. Demand for ferrous scrap should improve but its shortage could keep the prices firm in the immediate future. The index for HMS 1&2 (80:20) rose by Rs100/mt to Rs33,300/mt del Ahmedabad mills .