Domestic ferrous scrap prices continued to gain, however, the amount of increase was lower compared to early this week. COVID-19 cases in India are again on a rise and have dampened sentiment. Most buyers are thus exercising caution while making purchases. Steel prices in the country could also come under pressure should the situation persist.
The bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs125/mt ($1.72/mt) to Rs28,625/mt ($395.22/mt) del Chennai mill as offers rose on global cues. Material shortage in domestic and global markets also gave prices a lift. The index for Sponge iron declined by Rs600/mt to Rs26,400/mt del mill amid sluggish demand. In a bid to control the cost of production, most mills opted for scrap over Sponge iron.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) registered an uptick by Rs300/mt to Rs31,400/mt due to scrap shortage. The index for P&S increased by Rs500/mt to Rs32,900/mt. The index for Sponge iron settled flat at Rs27,600/mt as manufacturers were reluctant to lower offers amid strong global cues.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt to Rs29,000/mt del mill amid steady demand for finished and semi-finished steel from neighboring areas of Gujarat, Silvassa. The index for Sponge iron fell by Rs150/mt to Rs26,200/mt amid slow demand due to rising iron ore prices globally.
In other markets, the bi-weekly Davis Index for HMS 1&2 (80:20) settled unchanged at Rs30,100/mt del Ludhiana mill, while the index for Sponge iron settled at Rs29,500/mt, up by Rs600/mt del mill.
The bi-weekly index for HMS 1&2 (80:20) rose by Rs600/mt to Rs29,800/mt del Jaipur mill, while the index for Sponge iron settled at Rs28,400/mt delivered mill, up by Rs500/mt del mill.