Domestic ferrous scrap prices were rose in Mumbai and Mandi Gobindgarh but were largely flat in other major cities. Mills decided to wait for clarity in price direction and domestic fundamentals before booking more material. Although domestic demand is on a steady rise, mills are largely focusing on export markets.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt ($6.73/mt) to Rs35,000/mt del Mumbai mills, and the index for sponge iron rose by Rs400/mt to Rs31,500/mt delivered mills.
Demand for finished steel in Jalna is on a rise, and the bi-weekly Davis Index for HMS 1&2 (80:20) settled flat at Rs35,500/mt del Jalna mills. The index for sponge iron rose by Rs100/mt to Rs32,700/mt delivered mills.
Demand for ingots increased in the North, which led to a surge in scrap prices, the daily Davis Index for HMS 1&2 (80:20) rose by Rs700/mt to Rs36,500/mt del Mandi Gobindgarh, and the index for sponge iron rose by Rs400/mt to Rs34,200/mt delivered mills.
Mills in South India bought scrap in limited volumes. The bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs32,600/mt, and the index for sponge iron settled flat at Rs30,600/mt delivered mills.
China’s cancellation of rebate on CR&GI from August 1 could increase exports opportunities for Indian mills.
The bi-weekly index for HMS 1&2 (80:20) settled flat at Rs35,000/mt del Durgapur mills, and the index for sponge iron rose by Rs500/mt to Rs30,700/mt delivered mills.
Shipbreaking
Markets in Alang remained closed for a third consecutive day due to the ongoing transportation strike and could resume from Friday, as per market sources.
($1=Rs74.28)