Domestic ferrous scrap prices trended up on Friday as demand from steelmakers improved. Mills bagged good export orders. Domestic demand is also slowly picking-up as many states have started easing lockdowns.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt ($6.84/mt) to Rs38,400/mt del Mandi Gobindgarh mills and the index for sponge iron rose by Rs400/mt to Rs34400/mt del mills.
Mumbai is witnessing heavy rain which has stopped movements of trucks and created shortage of raw material. The daily Davis Index for HMS 1&2(80:20) rose by Rs200/mt to Rs34200/mt del Mumbai mills and the index for Sponge iron rose by Rs600/mt to Rs31300/mt del mills.
Offers from the seaborne markets also saw an uptick as domestic mills are short of raw material inventories. The index for HMS 1&2 (80:20) of UAE-origin rose by $7/mt to $490/mt cfr Nhava Sheva.
Market participants are expecting ferrous prices to rise further in the near-term amid shortage and increasing export orders for billets.