Indian domestic markets lost steam on Thursday with the indexes for ferrous scrap at most places settling flat to down. The availability of domestic scrap is increasing as economic activities recover in India, impacting prices.
The bi-weekly Davis Index for HMS 1&2 (80:20) settled unchanged in Indore at Rs28,300/mt ($384.13/mt) del Indore mill, while the index for Sponge iron declined by Rs1,300/mt ($17.64/mt) to Rs26,200/mt ($355.59/mt) del mill.
The bi-weekly index for HMS 1&2 (80:20) and Sponge iron declined by Rs300/mt to Rs27,650/mt and Rs27,900/mt del Ludhiana mill.
Although primary mills have been raising prices for finished steel, the rise is not supported by enough end-used demand. The price momentum, therefore, could be short-lived, believe some market participants.
The bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs150/mt to Rs27,400/mt del Jaipur mill, while the index for Sponge iron declined by Rs300/mt to Rs27,000/mt del Jaipur mill.
Amongst the daily priced markets, the index for HMS 1&2 (80:20) declined by Rs300/mt to Rs26,300/mt del Mandi Gobindgarh mill. The index for Sponge iron settled flat at Rs28,150/mt.
In Mumbai, the index for HMS 1&2 (80:20) rose by Rs500/mt to Rs27,500/mt del mill. The index for Sponge iron, however, increased by Rs100/mt to Rs26,600/mt delivered mill with deals reported at the index price.
In South India, the bi-weekly index for HMS 1&2 (80:20) settled flat at Rs27,550/mt del Chennai mill. Due to a shortage of iron ore, the index for Sponge iron rose by Rs150/mt to Rs26,500/mt del Chennai with no takers at those levels. But the availability of iron ore is expected to ease in the coming days, with many mines resuming operations.
In other regions, the Davis Index for HMS1&2 (80:20) rose by Rs1,100/mt to Rs26,750/mt del Goa mill amid global cues. The index for sponge iron dropped by Rs100/mt to Rs26,400/mt del mill.