Domestic ferrous scrap prices trended up on tight supply and firm demand from mills in the Western and Northern regions of India.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt ($4.08/mt) to Rs36,800/mt del Mumbai mills and the index for sponge iron rose by Rs900/mt to Rs31,100/mt ex-Alang, amid increase in domestic and international iron ore prices.
Plagued by shortage of oxygen cylinders, mills in the North were buying on a need basis, only to complete production targets.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt to Rs38,000/mt del Mandi Gobindgarh and the index for sponge iron settled flat at Rs33,000/mt del mills.
Market participants expect finished steel prices to increase further in the near-term as domestic steel prices are less than international prices.