Prices of Indian domestic ferrous scrap rose on Friday as its supply tightened in Mumbai and Mandi Gobindgarh.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs100/mt to Rs23,550/mt del Mumbai mills. Sponge iron manufacturers faced shortage of iron ore ahead of mining leases set to expire on Mar 31. However, the daily index for sponge iron settled unchanged at Rs19,600/mt del Mumbai mills on subdued demand.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs175/mt($2.43/mt) to Rs22,475/mt ($312.1/mt) del Mandi Gobindgarh. Transactions were heard at Rs22,500/mt. The daily index for sponge iron was flat at Rs22,300/mt del Mandi Gobindgarh on Friday.
In seaborne markets, ferrous scrap prices rose as lack of empty containers drove shipping lines to increase freight rates. The Davis index for shredded settled at $312/mt cfr Nhava Sheva Friday, up by $9/mt from a week ago.
Traders believe ferrous scrap demand could decline in the near term pressured by subdued finished steel markets. Trades are likely to pick up once the government announced infrastructure projects gain momentum.
($1 = Rs72)