Domestic ferrous scrap price trends were mixed on Thursday, largely governed by regional market dynamics. In parts of the country, finished steel demand picked up and drove mills to purchase scrap.
In Jalna, the bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs600/mt ($8.17/mt) from Tuesday to Rs24,300/mt ($331.02/mt) delivered mill, and the index for Sponge iron increased by Rs200/mt to Rs20,750/mt del mill. Finished steel sales in Maharashtra, especially rebar, are on the path to recovery on increasing construction activities. Mills are thus prepping to ramp up production.
In Ludhiana, the bi-weekly Davis Index for HMS 1&2 (80:20) settled unchanged from Tuesday at Rs24,900/mt delivered mill, while the index for Sponge iron increased by Rs450/mt to Rs23,100/mt del mill. The bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs23,400/mt del Jaipur mill, and the index for Sponge iron rose by Rs400/mt to Rs22,200/mt del mill. Mills in many parts of the country preferred to use Sponge over scrap since the prices for the latter have remained firm.
The daily Davis Indexes for HMS 1&2 (80:20) settled unchanged at Rs23,800/mt del Mumbai mill and fell by Rs200/mt to Rs22,800/mt del Mandi Gobindgarh. The indexes for Sponge iron rose by Rs300/mt to Rs20,500/mt del Mumbai mill, while settled flat at Rs22,100/mt del Mandi mill.
In Goa, the bi-weekly index for HMS 1&2 (80:20) increased by Rs250/mt to Rs23,250/mt delivered mill, and the index for Sponge iron increased by Rs300/mt to Rs20,500/mt del mill. Mills in the state, which usually prefer Sponge iron over scrap, have shifted their focus to the latter with a rise in Sponge iron prices. Many steelmakers buy Sponge iron from Bellary, a major producer district in South India. With the increased demand for Sponge in many other parts of the country, producers looked to raise offers by Rs500/mt in the late afternoon trade on Thursday.