Domestic ferrous scrap prices on Friday lost their steam and were flat to down in Mumbai and Mandi Gobindgarh markets. Heavy rains in Mumbai have subdued trades. Once the skies clear out, trades and prices could continue their uptrends, said traders.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs22,500/mt ($300.15/mt) delivered mill and the index for sponge iron rose by Rs50/mt to Rs19,100/mt del mill. Sponge iron prices have been rising for the past couple of weeks due to short supply. The bullish global iron ore prices which have been around $110/mt levels have also given prices a lift.
In Mandi Gobindgarh, the daily index for HMS 1&2 (80:20) fell by Rs21,200/mt del mill while the index for sponge iron settled flat at Rs21,000/mt del mill. A fall in ingot prices pressured ferrous scrap prices. Sponge iron prices, however, have largely remained firm amid a shortage of material. The price gap between sponge and scrap which is usually around Rs1,000-1,200/mt has now narrowed to merely Rs200/mt.