The daily Davis Index for HMS1&2 (80:20) rose by Rs400/mt ($5.61/mt) to Rs22,300/mt ($313.2/mt) del Mandi Gobindgarh as demand for raw materials rose. The daily index for sponge iron rose by Rs225/mt del Mandi Gobindgarh. The index for HMS 1&2 (80:20) increased by Rs500/mt to Rs22,275/mt del Ludhiana.
Besides increased demand, few cartels in the North spread artificial fluctuation rates for steel in the market which also contributed to the rise in scrap prices. Manufacturers raised concerns about such cartels spreading messages about daily fluctuation in steel rates without valid reasons. Businesses have requested the Indian government to set up a steel price regulator to address their concerns as this artificial fluctuation is affecting their margins.
In southern India, the index for HMS 1&2 (80:20) rose by Rs150/mt to Rs23,100/mt del Chennai as bookings increased. Manufacturers in downstream industries increased production to meet their monthly targets. The index for sponge iron settled at Rs20,000/mt up by Rs250/mt.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs250/mt to Rs22800/mt del Mumbai mills and the index for sponge iron rose by Rs150/mt to Rs20,350/mt. The indices for HMS 1&2 (80:20) remained unchanged at Rs22,000/mt del Goa and Rs23,000/mt del Ahmedabad.
Though there was an uptick in prices in few regions, traders expect prices to be under pressure in the near term.
($1=Rs71.17)