Domestic scrap markets in India showed mixed trends on Tuesday. Barring a few regions, prices were flat to up.
The bi-weekly Davis Index for HMS 1&2 (80:20) was at Rs25,000/mt ($340.27/mt) del Indore mill, an uptick of Rs100/mt ($1.36/mt). The index for Sponge iron settled at Rs22,700/mt del mill, up by Rs200/mt.
In Ludhiana, the index for Sponge iron rose by Rs50/mt from the prior Thursday to Rs23,150/mt del mill, while the index for HMS 1&2 (80:20) declined by Rs400/mt to Rs24,500/mt.
Rains have slowed construction activities in many parts of the country, including Maharashtra. Amid lack of trades, in Mumbai, the daily index for HMS 1&2 (80:20) settled unchanged at Rs23,800/mt del mill for the second day, while the index for Sponge iron rose by Rs100/mt to Rs20,800/mt del Mumbai mill.
Despite in a drop in ingot prices in Mandi Gobindgarh by Rs100/mt, the index for HMS 1&2 (80:20) rose by Rs200/mt to Rs22,800/mt del mill. The index for Sponge iron rose by Rs100/mt to and Rs22,300/mt del Mandi Gobindgarh mill. The rise in scrap prices is mainly driven by firm Sponge iron offers, which made most mills switch their preference.
In South India, finished steel sales have improved giving ferrous scrap prices a lift. The bi-weekly index for HMS 1&2 (80:20) rose by Rs300/mt to Rs23,000/mt del Chennai mill and the index for Sponge iron rose by Rs500/mt to Rs20,500/mt del mill.