Domestic ferrous scrap prices rose on Monday in Maharashtra amid tight supply and pent-up demand for finished steel from end-users.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs1,200/mt ($16.07/mt) to Rs33,400/mt del Mumbai mills and the index for sponge iron rose by Rs1,000/mt to Rs30,300/mt del mills.
Mills in the North saw an uptick in demand from ingot makers, which also pushed up scrap prices. The daily Davis Index for HMS 1&2 (80:20) rose by Rs700/mt to Rs34,600/mt del Mandi Gobindgarh and the index for sponge iron rose by Rs100/mt to Rs32,500/mt del mills.
In the state of Punjab, the power corporation has relaxed power cuts for industrial consumers, which could help mills to resume production activities.
Traders are expecting prices to remain firm in Maharashtra amid a shortage of ferrous scrap and in the North, market participants are still waiting for a clear price direction.
($1=Rs74.6)