Domestic ferrous scrap prices gained on Friday amid tight supply.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs700/mt ($9.411/mt) to Rs35,550/mt ($477.97/mt) del mill. Domestic scrap has dried up in most regions of the country as lately, mills gave preference to local supply citing high price levels for imported scrap. Shortage of containers and a rise in freight rates have increased the landed cost for imported scrap. Some mills, especially those with urgent requirement, chose to procure sponge iron on scrap shortage. The daily Davis Index for sponge iron increased by Rs100/mt to Rs32,200/mt del Mandi mill.
In Mumbai, steel production has slowed down as oxygen cylinders are being diverted for medical use. Still, the daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt to Rs3,2500/mt del Mumbai mills on scrap shortage. The index for sponge iron rose by Rs200/mt to Rs29,900/mt del Mumbai mills.
($1=Rs75)