Indian domestic scrap market continued to be upbeat on Thursday amid sustained demand for finished and semi-finished steel. Scrap sellers either raised their offers or stayed away from the market hoping to sell at higher prices in the coming days. China is back in the market for billet purchases after their lunar new year holidays. Prices for billets in the overseas markets have thus increased by around $15/mt from a week ago. The bullishness in the export market has instilled confidence in billet producers who kept their asking prices firm even in the domestic market.
In Ludhiana, the bi-weekly index for HMS 1&2 (80:20) and Sponge iron rose by Rs1,000/mt ($13.77/mt) from Tuesday to Rs29,500/mt ($406.22/mt) and Rs28,600/mt ($393.75/mt) del mill, respectively. The ministry of road transport and highways late last week allowed the use of secondary steel in road construction projects. Market sentiment has turned positive after this announcement.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs1,500/mt to Rs29,000/mt del Indore mill, while the index for Sponge iron rose by Rs1,000/mt to Rs27,000/mt del mill. Aiding the rise is also the hope of finished steel demand sustaining for at least a month. After the winter crop harvest, small-scale real estate projects in semi-urban and rural are known to pick up, supporting steel trades and prices.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) settled flat at Rs30,800/mt delivered mill amid healthy demand. The index for P&S and busheling rose by Rs600/mt to Rs32,200/mt and Rs33,600/mt delivered mill, respectively, supported by strong demand. The index for Sponge iron settled flat at Rs26,300/mt delivered mill. In Mumbai, the daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs28,500/mt. The index for Sponge iron, however, rose by Rs750/mt to Rs26,450/mt del mill amid stable demand.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs1,000/mt to Rs26,500/mt del Chennai mill. Panic buying amid supply crunch and bullish global scrap market gave prices a lift. The bi-weekly Davis Index for Sponge iron rose by 1,850/mt to Rs25,850/mt del Chennai mill.
In other markets, the bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs1,000/mt to Rs26,500/mt del Hyderabad mill, the index for End cuttings rose by Rs1,100/mt to Rs28,000/mt delivered mill, while that for Sponge iron was at Rs26,250/mt delivered mill, by Rs750/mt. The bi-weekly Davis Index for HMS (80:20) rose Rs900/mt to Rs29,200/mt delivered Jaipur mill while the index for Sponge iron rose by Rs1,000/mt to Rs27,600/mt del mill.