Domestic ferrous scrap prices rose on Wednesday as supply remained tight. Mills were in the market only to buy for their immediate melt requirements. There was an uptick in finished steel demand in Maharashtra.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt($2.68/mt) to Rs33700/mt del Mumbai mills, and the index for sponge iron settled flat at Rs31,100/mt delivered mills.
Demand from the ingot makers in the North was healthy, and the daily Davis Index for HMS 1&2 (80:20) rose by Rs700/mt to Rs35,700/mt del Mandi Gobindgarh, and the index for sponge iron declined by Rs200/mt to Rs33,300/mt delivered mills.
Mills opted for local scrap over imported as there is a $25/mt gap between domestic and imported prices. Transit time became yet another reason for the decision.
Traders in Mumbai expect ferrous scrap prices to rise further this week amid shortages.
($1=Rs74.5)