Prices for domestic ferrous scrap in India, rose on Tuesday mainly aided by a rise in steel prices. With the Holi holidays coming to an end, most mills ramped up purchases of scrap. Once they complete year-ending formalities, steelmakers could focus on boosting their sales. In the global ferrous market, a rise of $6/mt in Turkey’s last overseas scrap bulk deal has lifted the sentiment. Imported scrap prices in India could, therefore, witness a rise.
In Hyderabad, the bi-weekly index for HMS 1&2 (80:20) rose by Rs1,900/mt ($25.87/mt) from last Thursday to Rs31,000/mt ($422.14/mt) del mill; while the index for Sponge iron was up by Rs1,800/mt to Rs27,800/mt del mill. For the past few days, steelmakers have been adopting a just-in-time inventory strategy. But many steelmakers were away since late last week ahead of the Holi holidays. With their inventories dipping, these mills returned to the market on Tuesday. Aiding the price rise is also a persisting short supply of material.
In Jaipur, the bi-weekly index for HMS 1&2 (80:20) rose by Rs750/mt to Rs31,500/mt del mill; and the index for Sponge iron increased by Rs1,200/mt to Rs30,700/mt del mill.
In South India, the bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs1,125/mt to Rs 31,125/mt del Chennai mill amid a shortage of scrap. The rise in scrap prices in Turkey is expected to raise asking prices for imported scrap in India. Thus, domestic sellers too increased their offers. The index for Sponge iron increased by Rs950/mt to Rs27,150/mt del Chennai mill.
With strike ending in Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) rose by Rs1,200/mt from Friday to Rs33,750/mt del mill. Offers for Sponge iron rose by Rs700/mt to Rs29,300/mt del mill. Market activity was limited.
The daily Davis Index for HMS1&2 (80:20) rose by Rs1,000/mt from Friday Rs30500/mt del Mumbai mills and the index for sponge iron rose by Rs2000/mt to Rs28000/mt del Mumbai mills
The state government of Maharashtra is mulling another stringent lockdown for major cities, including Mumbai, should the district administration fail to contain the spread of coronavirus. A lockdown could impact consumption and prices for ferrous scrap.
($1=Rs73.43)