Domestic ferrous scrap prices in India were flat to down on Thursday.
In the North, prices were under pressure due to a decline in ingot prices. Trading remains slow as finished steel demand has failed to show any signs of recovery. In Jaipur, the bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs600/mt ($8.22/mt) from Tuesday to Rs25,600/mt ($350.83/mt) delivered mill, while the index for Sponge iron settled unchanged at Rs25,600/mt del mill.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) declined by Rs950/mt to Rs25,800/mt delivered mill. Steelmakers looked to clear their piled-up finished steel inventories to generate liquidity before any more scrap purchases. The index for P&S fell by Rs700/mt to Rs27,300/mt. The offers for Sponge iron settled unchanged at Rs24,400/mt del Mandi mill with limited deals.
In Ahmedabad and Indore, suppliers were unwilling to lower their offers, and the resulting stand-off between buyers and sellers kept the index for scrap unchanged. Sponge iron prices are still unworkable for mills who are largely staying away from its purchases. The bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs26,300/mt del Indore mill, while the index for Sponge iron dipped by Rs200/mt to Rs24,500/mt del mill. In Ahmedabad, the bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs25,500/mt del mill. Trades for turnings scrap were heard in the range of Rs24,000-24,300/mt del mill. The index for Sponge iron fell by Rs200/mt to Rs25,250/mt del Ahmedabad mill.
The bi-weekly Davis Index for HMS 1&2 (80:20) declined by Rs1,375/mt ($30.82/mt) to Rs23,875/mt ($345.90/mt) del Chennai mill. Market participants are bearish amid uncertainty over the revival of steel demand. The Turkey prices declined by $1.25 to $397.5/mt on Wednesday, suggestive of weak global cues making mills wary of trades. Most buyers chose to stay away from the market till prices stabilize. The index for Sponge iron, declined by Rs150/mt to Rs23100/mt del Chennai mill with limited deals.
In Hyderabad, the index for HMS 1&2 (80:20) settled unchanged at Rs25,000/mt del mill while the index for Sponge iron declined by Rs450/mt to Rs23,000/mt del mill.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs26,500/mt del mill. Domestic material is priced only Rs500/mt lower than imported material. Still, mills opted for domestic scrap over imported scrap amid weak market dynamics. The index for Sponge iron dropped by Rs250/mt to Rs23,200/mt del mill.