The daily Davis Index for HMS 1&2 (80:20) rose by Rs100/mt ($1.35/mt) to Rs27,700/mt ($376.44/mt) del Mandi Gobindgarh mill. Keeping in view the uptrend in input costs, mills are expected to raise finished steel prices. The ongoing farmers’ agitation against the new Farm Bill has led to a demand-supply gap, which has also aided the price rise.
The index for Sponge iron moved up by Rs325/mt to Rs28,575/mt del Mandi Gobindgarh mill. A few mills are alleging that the market is facing an artificial scarcity of iron ore. Some shipments for imported iron ore are expected to reach India in the near term which could ease the shortage.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) settled flat at Rs28,000/mt delivered mill with limited trades reported at index price. The index for Sponge iron increased by Rs150/mt to Rs27,700/mt del mill.