Domestic ferrous scrap prices rose on Friday as demand from steelmakers picked up in Maharashtra after a long gap. The daily Davis Index for HMS 1&2 (80:20) rose Rs200/mt($2.67/mt) to Rs32,200/mt del Mumbai mills and the index for sponge iron declined by Rs100/mt to Rs29,300/mt del mills.
Mills are trying to stock their raw material inventories ahead of monsoons. Within the next 4-5 days Mumbai and the surrounding areas are expected to receive heavy rainfall which could impact logistics.
Ingot sales in the North also improved amid firm demand from end-users, while on the other hand, production cut by mills has created a shortage of semis.
On Friday, ferrous scrap suppliers in Mandi Gobindgarh raised offers. The index for HMS 1&2 (80:20) rose Rs100/mt to Rs33,900/mt del mill and the index for sponge iron rose by Rs100/mt to Rs32,400/mt del mills.
Market participants are still waiting for a clear price direction amid bearish sentiments due to the monsoon lull and a fear of the third wave of COVID-19.
($1=Rs74.6)