Prices for domestic HMS were largely firm on Thursday. Bullishness in the global ferrous scrap market, shortage of material, and rising finished steel prices gave domestic ferrous scrap a lift.
In Indore, the bi-weekly Davis Index for HMS 1&2 (80:20) and sponge iron rose by 500/mt ($6.67/mt) from Tuesday to Rs23,500/mt ($313.58/mt) del and Rs21,500/mt del mill. Demand and prices for finished steel, however, have recorded a comparatively lower upward trajectory. In the past two weeks, steel markets have improved said most steelmakers.
In Jaipur, the bi-weekly index for sponge surged by Rs1,100/mt to Rs21,400/mt del and the index for HMS 1&2 (80:20) increased by Rs400/mt to Rs22,900/mt del mill. Most mills are facing a shortage of raw material, especially sponge iron, for which the delivery time has increased.
The daily indexes for HMS 1&2 (80:20) settled at Rs22,500/mt del Mumbai mill, unchanged, and Rs21,400/mt del Mandi Gobindgarh mill, down by Rs200/mt. Mumbai is on a red alert for heavy rains. Trades, therefore, are likely to remain subdued till the winds subside. Prices could then continue to rise. The index for sponge iron in Mumbai settled unchanged at Rs19,050/mt delivered mill and the index in Mandi Gobindgarh increased by Rs1,000/mt to Rs21,000/mt del mill.
The South Indian ferrous markets were also largely unchanged and the index for HMS 1&2 (80:20) settled at Rs22,000/mt del Chennai and Hyderabad mills. Most steelmakers have already stocked up raw material and are expected to return to the markets once the inventories start dipping. The index for sponge iron settled at Rs18,200/mt del Chennai mill, unchanged and at Rs18,800/mt del Hyderabad mill, up by Rs300/mt from Tuesday.