Indian domestic ferrous scrap prices were mixed on Tuesday. Until last week, domestic scrap prices mirrored the bullish global ferrous scrap markets. Bookings in Turkey came to a halt on Thursday as buyers and sellers found no common grounds. But Indian prices are likely to rise when buying activity picks up again in Turkey.  

 

In Mumbai, the daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt($4.17/mt) to Rs23,700/mt del mills as its supply tightened in the domestic market. The index for sponge iron remained unchanged at Rs19,900/mt del Mumbai

In the North, the daily index for HMS 1&2 (80:20) rose by Rs129/mt to Rs22,229/mt del Mandi Gobindgarh and in Ludhiana, the index rose by Rs150/mt to Rs22,150/mt. The index for sponge iron increased by Rs100/mt to Rs22,300/mt del Mandi Gobindgarh.

In southern India, the index for HMS 1&2 (80:20) fell by Rs25/mt to Rs21,750/mt del Chennai and the index for sponge iron declined by Rs100/mt to Rs19,800/mt del Chennai.

 

The index for HMS 1&2 (80:20) in Jalna increased by Rs150/mt to Rs23,050/mt delivered mills and the index for sponge iron rose by Rs25/mt to Rs20,175/mt delivered mills.

 

Market participants expect finished steel demand to rise in the near term once the Indian government begins to build a 16,000km gas pipeline,  giving ferrous scrap prices a lift.

 

($1 = Rs71.90)

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