In most places in India, domestic ferrous scrap prices trended flat to up on Tuesday. Amid expectations of major primary mills raising finished steel prices, the market sentiment was positive. The Indian economy is also on the mend, with businesses gradually returning to pre-COVID-19 levels of activity.
The bi-weekly index for HMS 1&2 (80:20) rose by Rs300/mt ($4.03/mt) from Thursday last week to Rs26,000/mt ($349.46/mt) del Indore mill, while the index for Sponge iron increased by Rs800/mt to Rs24,500/mt del mill. Finished steel demand in the region has started to rise with stalled construction projects resuming work. By mid-November, trades, however, could slow for a few days should the laborers go for a Diwali break.
Sponge iron prices were largely up in India amid a continued shortage of iron ore. In the North, however, trades remain hit with protests over the farm bill still raging. With the railway movement hit, coal shortage and the resulting power cuts could affect the steel industry negatively in the coming days.
The daily index for Sponge iron and HMS 1&2 (80:20) remained flat at Rs24,100/mt and Rs24,000/mt del Mandi Gobindgarh mill, respectively. Despite a lack of trades, strengthening domestic and global steel markets stopped prices from falling. The bi-weekly index for HMS 1&2 (80:20) rose by Rs400/mt from Friday last week to Rs25,650/mt del Ludhiana mill, while the index for Sponge iron increased by Rs500/mt to Rs25,500/mt del mill.
A shortage of iron pellets in the Goa market raised input costs for mills as Sponge iron prices rose and its bi-weekly index settled at Rs22,500/mt delivered mill, up by Rs1,100/mt. The index for HMS 1&2 (80:20), however, settled unchanged at Rs23,500/mt del mill.
In Mumbai, the daily index for HMS 1&2 (80:20) rose by Rs200/mt to Rs25,000/mt delivered mill, while the index for Sponge iron increased by Rs300/mt to Rs22,800/mt del mill. While in South India, the indexes for HMS 1&2 (80:20) and Sponge iron settled unchanged at Rs24,000/mt and Rs22,100/mt del Chennai mills.