Domestic ferrous scrap prices rose on Tuesday amid tight supply. Scrap collection has slowed down due to the ongoing monsoon.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt($6.71/mt) to Rs34,500/mt del Mumbai mills, and the index for sponge iron rose by Rs500/mt to Rs31,800/mt delivered mills. Mills bought ferrous scrap on for their immediate melt requirements.
The bi-weekly index for HMS 1&2(80:20) rose by Rs1,000/mt to Rs35,500/mt del Jalna and the index for sponge iron rose by Rs700/mt to Rs32600/mt delivered mills.
Market sentiment in the eastern part of India improved as mills tapped export markets, the bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs35,000/mt del Durgapur mills, and the index for sponge iron declined by Rs300/mt to Rs30,200/mt delivered mills.
Mills in Mandi Gobindgarh saw a limited demand for ingots on Tuesday. The daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs36,100/mt del Mandi mills, and the index for sponge iron settled flat at Rs34,500/mt delivered mills.
China levying 10-25pc on steel exports could put Indian mills at an advantage in the overseas market and boost ferrous scrap demand.
Mills in Goa bought limited volumes of scrap, but a supply crunch led to a surge in prices. The bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs33,000/mt del Goa mills, and the index for sponge iron declined by Rs200/mt to Rs31,000/mt delivered mills.
Shipbreaking markets
Markets in Alang remained shut due to a strike by the transportation association to demand a raise in freight charges. The strike could continue for 3-4 days until mills accept their demands.
($1=Rs74.4)