Domestic ferrous scrap prices in India continued an upward trend on Tuesday due to tight supply, global cues as well as spurt in demand from the steelmakers.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs700/mt ($9.62/mt) to Rs29,700/mt ($408.45/mt) del mill amid supply crunch. Anticipation of strong demand for finished steel aided by government’s road infra projects also gave the prices a lift. The index for P&S rose by Rs1,200/mt to Rs31,200/mt. Some mills are considering procuring Sponge iron due to persisting shortage. The index for Sponge iron rose by Rs900/mt to Rs26,100/mt del mill. Moreover, the rise in Sponge iron price was also driven by a $6/mt rise in spot imported iron ore prices from the prior week to $166.8 cfr Qingdao on Monday.
In Ludhiana, the bi-weekly index for HMS 1&2 (80:20) rose by Rs700/mt to Rs28,500/mt del mill, busheling increased by Rs1,000/mt to Rs32,000/mt del mill, while the index for Sponge iron declined by Rs350/mt to Rs27,600/mt del mill.
In Jaipur, the bi-weekly index for HMS 1&2 (80:20) rose by Rs300/mt from the prior week to Rs28,300/mt del mill, while the index for Sponge iron declined by Rs300/mt to Rs26,600/mt del mill.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt to Rs28,000/mt del mill. The index for Sponge iron rose by Rs800/mt to Rs25,700/mt del mill. Most mills are relying on domestic material. Consequently, supply has started to dip giving prices a lift.
In Durgapur, the bi-weekly index for HMS (1&2) 80:20 and Sponge iron settled flat at Rs28,000/mt and 23,525/mt del mill. Market activity thinned due to Basant Panchami celebrations.