Domestic ferrous scrap prices in Indian markets were largely on an uptrend on Tuesday supported by a rise in HRC prices by a maximum of Rs2,000/mt.
The daily Davis Indexes for HMS 1 &2 (80:20) increased by Rs100/mt to Rs22,300/mt del Mandi Gobindgarh mill and by Rs200/mt to Rs23,600/mt del Mumbai mill. The index for sponge iron rose by Rs100/mt to Rs21,450/mt del Mandi mill and by Rs300/mt to Rs19,600/mt del Mumbai mill.
Demand for HRC in the automotive sector is upbeat with many manufacturers ramping up production. But an equal amount of enthusiasm could not be witnessed in the rebar market.
The bi-weekly index for HMS 1 &2 (80:20) increased by Rs900/mt ($12.30/mt) from the Thursday prior to Rs24,500/mt ($334.79/mt) del Indore mill and the index for sponge iron rose by Rs700/mt to Rs21,800/mt del mill. A shortage of oxygen cylinders continues in the market, but with the spread between scrap and rebar improving in many markets, mills were willing to pay more to keep up their production.
The bi-weekly index for HMS 1 &2 (80:20) increased by Rs800/mt from the Thursday prior to Rs24,500/mt del Ludhiana mill and the index for sponge iron rose by Rs850/mt to Rs22,500/mt del mill. Till the month end, the market could remain volatile, after which it could strengthen, believes a trader.
In Chennai, however, the bi-weekly indexes for HMS 1 &2 (80:20) and sponge iron settled unchanged at Rs23,000/mt and Rs18,500/mt del mill, respectively. Most mills have already stocked up on ferrous scrap and continued to be away from the market. Until end-user demand turns strong, the market could maintain a status-quo.