Ahead of the upcoming Diwali festival later this week, steel trades and prices in the Indian market came under pressure. In most regions, despatches are unlikely to happen after Thursday. After Diwali, buying could increase.
The bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs1,750/mt ($23.56/mt) to Rs24,250/mt ($326.59/mt) del Ludhiana mill, while the index for Sponge iron declined by Rs250/mt to Rs24,000/mt del mill. The fall in prices for higher scrap grade was, however, lower and the bi-weekly index for busheling settled at Rs28,100/mt delivered mill, down by Rs1,250/mt del mill.
In Mandi, the daily index for HMS 1&2 (80:20) settled flat at Rs24,300/mt del mill amid muted demand. The index for Sponge iron, however, declined by Rs200/mt to Rs25,000/mt delivered mill with no trades reported. Although prices have registered a decline, there is still a positive sentiment. Mills are anticipating prices to gain after Nov 10, with an expectation of ingot prices even touching Rs36,000/mt by December first week.
The bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs400/mt to Rs26,000/mt del Indore mill, while the index for Sponge iron declined by Rs1,000/mt to Rs24,000/mt del mill. Finished steel prices have registered a steeper decline than raw material prices, pressuring mills. Prices for finished steel declined by 2pc, while those for Sponge iron and scrap registered a drop of 1pc and 1.5-1.75pc, respectively, in the past few days.
In South India, demand for finished steel continues to remain sluggish, yet raw material prices remained flat from the prior Thursday, with the bi-index for sponge iron and HMS 1&2 (80:20) settling at Rs22,300/mt and Rs24,500/mt del Chennai, respectively, on Tuesday.
The daily Davis Index for HMS 1&2 (80:20) dropped by Rs1,000/mt to Rs25,000/mt del Mumbai mill amid sluggish demand for finished steel, while the index for Sponge iron settled flat at Rs23,200/mt del mill.
($1=Rs74.25)