In Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) and P&S rose by Rs750/mt ($10.34/mt) from Friday to Rs32,750/mt ($451.89/mt) and Rs34,250/mt ($472.59 del mill, respectively, on a brief uptick in demand on Saturday. Stockists procured finished steel for infrastructure projects scheduled for completion before the new year begins on April 1, aiding the sentiment for scrap purchases. But late on Monday, scrap demand came under pressure which could impact prices on Tuesday. Supply, on the other hand, remains short. The index for Sponge iron settled flat at Rs28,000/mt del Mandi mill with limited deals.
Also, Mandi’s local steel association has called for halting production and purchase of scrap as a mark of protest against GST compliance challenges faced by local mills. The association has asked mill owners to close production and scrap purchases for 48 hours, from March 17, 8:00am to March 19. Domestic scrap prices and supplies are likely to be hampered by this industrial action, if mills agree to comply.
In Mumbai, the index for HMS 1&2 (80:20) rose by Rs300/mt to Rs29,000/mt del mill. Demand, however, is slow amid looming fear over COVID-19 restrictions tightening. Traders are uncertain of market direction as imported and domestic price trends are moving in different directions. The index for Sponge iron dropped by Rs50/mt to Rs26,650/mt delivered mill.