Domestic ferrous scrap prices in the Mumbai market increased on Wednesday as mills stocked inventories to meet their requirements for the next two months. Transportation during peak monsoon season becomes tedious.
The daily index for HMS 1&2 (80:20) rose by Rs200/mt ($2.68/mt) to Rs21,200/mt ($270.63/mt) del Mumbai mill and the index for sponge iron settled unchanged at Rs16,700/mt del mill. Trades for both were heard at index prices.
In Mandi Gobindgarh, HMS 1 &2 (80:20) index fell by Rs200/mt to Rs20,100/mt del mil and the index for sponge iron settled flat at Rs19,500/mt del mill, with trades at the index price. Ferrous scrap prices were pressured by a fall in ingot prices.
Suppliers of sponge iron lifted their offers by Rs200/mt from the current price hoping that mills will raised their buying prices. Rising demand for sponge iron from Bangladesh and bullish global ferrous scrap markets supported suppliers’ hopes.