Ferrous scrap and sponge iron prices fell on Thursday weighed down by a fall in finished and semi-finished steel prices. Mills state prices will remain rangebound with little possibility of a rise before September.

 

The bi-weekly for HMS 1&2 (80:20) fell by Rs500/mt ($6.65/mt) to Rs24,200/mt ($322.24/mt) del Indore mill and the index for sponge iron settled at Rs23,500/mt delivered mill, down Rs1,000/mt. Prices fell despite the market facing a shortage of raw material as buyers were unwilling to increased offers.

 

The bi-weekly for HMS 1&2 (80:20) fell by Rs500/mt to Rs2,4750/mt del Ludhiana mill and the index for sponge iron settled at Rs23,100/mt delivered mill, down Rs1,500/mt. A fall in ingot and billet prices in the North has kept raw material trades at bay.

 

The bi-weekly for HMS 1&2 (80:20) fell by Rs500/mt to Rs23,900/mt del Jaipur mill and the index for sponge iron settled at Rs22,200/mt delivered mill, down Rs1,250/mt.  

 

The All India Induction Furnaces Association has written a letter to India’s Prime Minister Narendra Modi seeking a ban or a 30pc duty on exports of raw iron ore pellets. The association states exports of the raw material have increased the input cost, distressing secondary steelmakers.

 

The daily index for HMS 1&2 (80:20) and sponge iron fell by Rs200/mt to settle at Rs23,600/mt and Rs21,300 del Mumbai mill, respectively. In Mandi Gobindgarh, the index for sponge iron settled at Rs22,000/mt del mill while the index for HMS 1&2 (80:20) settled at Rs22,700/mt delivered mill, both unchanged.

 

The fall in sponge iron prices was less steep in the Southern part of the country. The bi-weekly for HMS 1&2 (80:20) fell by Rs500/mt to Rs22,000/mt del Hyderabad mill and the index for sponge iron settled at Rs21,350/mt delivered mill, down Rs200/mt. While the indexes for HMS 1&2 (80:20) and sponge iron settled unchanged at Rs23,000/mt and Rs20,500/mt delivered mill, respectively.

 

($1=Rs75.09)

 

 

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