Ferrous scrap prices were firm in the western part of India amid tight supply. Demand for steel from end-users has picked up.
The daily Davis Index for HMS 1&2(80:20) rose by Rs100/mt ($1.34/mt) to Rs33,500/mt del Mumbai mills, and the index for sponge iron rose by Rs400/mt to Rs30,700/mt delivered mills.
In Jalna, the bi-weekly index for HMS 1&2(80:20) rose by Rs1,000/mt from last Thursday to Rs33,500/mt delivered mills, also on increased demand. The index for sponge iron rose by Rs300/mt to Rs31,500/mt delivered mills.
Mills in Goa bought ferrous scrap only for their immediate melt requirements, and the bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs32500/mt del Goa mils. The index for sponge iron rose by Rs1000/mt to Rs30,000/mt delivered mills.
Markets in the North saw low demand from ingot makers forcing scrap suppliers to reduce offers. The daily Davis Index for HMS 1&2 (80:20) declined by Rs600/mt to Rs34,000/mt del Mandi Gobindgarh, and the index for sponge iron fell by Rs100/mt to Rs32400/mt delivered mills.
In Chennai, demand for finished steel remained firm, aiding suppliers to lift offers. The bi-weekly index for HMS 1&2 (80:20) rose by Rs425/mt to Rs33,500/mt del Chennai mills, and the index for sponge iron rose Rs1,400/mt to Rs29,700/mt delivered mills.
Market participants in the North expect ferrous scrap prices to remain under pressure. In Maharashtra, however, prices could remain firm because of tight supply.