Domestic ferrous scrap prices in India found support from rising semi-finished and finished steel prices. But overall demand remained low.
In Mandi, the daily Davis Index for HMS 1&2 (80:20) rose by Rs900/mt($9.37/mt) to Rs35,000/mt del mill, while the index for sponge iron increased Rs1,000/mt to Rs33,500/mt del mill fuelled by a rise in steel prices in the secondary market.
The bi-weekly indexes for #1 busheling and end cuttings in Ludhiana rose Rs1,500/mt from last Thursday to Rs38,000/mt and Rs37,800/mt del mills, respectively. The index for sponge iron increased by Rs700/mt to Rs33,200/mt del mill, however, buyers remained apprehensive amid the likelihood of the third wave of COVID-19 and the ongoing rainy season. Demand could recover by late August and support higher offers if primary mills hike finished steel prices.
The bi-weekly index for end cuttings increased by Rs1,000/mt to Rs38,000/mt delivered Raipur mill and the index for sponge iron was up by Rs600/mt to Rs29,600/mt del mill.
The bi-weekly index for HMS 1&2 (80:20) increased by Rs700/mt to Rs34,500/mt delivered Indore mill and the index for sponge iron was up by Rs900/mt to Rs32,500/mt del mill. Demand for finished steel picked up in Madhya Pradesh, which led to an increase in the price of raw materials.
In Maharashtra, rebar sales increased despite heavy rains in many parts of the state. Sales in Mumbai, however, were impacted by the deluge. Furthermore, a shortage of ferrous scrap in the domestic market pushed prices up the daily index for HMS 1&2 (80:20), which rose by Rs300/mt to Rs33,500/mt del Mumbai mill while the index for sponge iron increased by Rs300/mt to Rs31,100/mt del mills.
The bi-weekly index for HMS 1&2 (80:20) in Jalna rose Rs700/mt to Rs33,700/mt del mill and the index for sponge iron increased by Rs400 to Rs31,900/mt del mill, with steelmakers reporting healthy sales.
($=Rs74.6)