Domestic ferrous scrap price trends were flat to down on Thursday as the markets went into a corrective mode. For the past few months, prices were on an uptrend, mainly due to shortage of material. Steel Authority of India has raised its rebar prices by Rs1,500/mt for the second time this week. But it did not fuel a rise in raw material prices.
In the North, the bi-weekly index for HMS 1&2 (80:20) fell by Rs300/mt ($4.06/mt) to Rs25,700/mt ($347.92/mt) del Ludhiana mill, and the index for Sponge iron fell by Rs100/mt to Rs27,600/mt del mill. The daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs24,200/mt del Mandi Gobindgarh mill. Sponge manufacturers have reduced offers despite a shortage of iron ore and resulting firm prices. Still, mills shied away from making purchases and the index for sponge fell by Rs1,000/mt to Rs26,400/mt del mill.
In Chennai, the bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs25,550/mt del Chennai mill since the cyclonic storm Nivar made landfall near Puducherry, hampering logistics, infrastructure and thus, transactions were close to none. The index for Sponge iron rose by Rs750/mt to Rs24,800/mt del Chennai.
In Mumbai, the Davis Index for HMS 1&2 (80:20) settled flat at Rs26,850/mt del Mumbai mill amid weak demand for finished steel. The index for Sponge iron, however, dropped by Rs1,050/mt to Rs25,100/mt del mill.
In other markets, mills have stocked up material. The bi-weekly index for HMS 1&2 (80:20) dropped by Rs700/mt to Rs24,500/mt del Jalna mill, and the index for Sponge iron fell by Rs1,450/mt to Rs23,750/mt del Jalna mill. The bi-weekly index for HMS 1&2 (80:20) fell by Rs100/mt to Rs25,200/mt del Jaipur mill, and the index for Sponge iron fell by Rs250/mt to Rs26,700/mt del mill.
($1=Rs73.86)