Domestic ferrous scrap prices rose on Wednesday amid steady demand from secondary steelmakers while demand from local end-users is slowly picking up. However, mills are giving more importance to exports.
The daily Davis Index for HMS 1&2(80:20) rose by Rs700/mt ($9.51/mt) to Rs24,000/mt del Mumbai mills and the index for Sponge iron settled flat at Rs19,800/mt del Mumbai mills.
The government is focusing on driving domestic consumption of steel by scaling-up manufacturing to meet the rural demand and is planning to infuse funds for the sector’s growth.
Markets in Mandi Gobindgarh, after staying weak amid unexpected GST raids, rose on Wednesday as mills that had halted bookings were back in action. The daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt to Rs22,500/mt del Mandi Gobindgarh and the index for Sponge iron settled unchanged at Rs22,500/mt del Mandi mills. Few trades for HMS were heard at the index price.
Traders expect scrap prices to remain firm due to its scarcity while demand from auto sector is expected to surge ahead of festivities.