Indian domestic ferrous scrap prices rose in Mumbai amid a scarcity of scrap in the market, while prices in Mandi Gobindgarh remained flat as demand for finished steel stayed low.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs150/mt ($2.03/mt) to Rs23,150/mt del Mumbai mills and the daily index for sponge iron settled at Rs19,400/mt up by Rs100/mt del Mumbai mills.
Cargo vessels docking at Nhava Sheva port will be screened by Port Health officials to prevent the spread of COVID-19 virus. This will delay shipments and impact domestic ferrous prices. Freight applicable on imported scrap could raise due to delay charges.
The daily Davis Index for HMS 1&2 (80:20) and sponge iron remained unchanged at Rs21,863/mt and Rs21,292/mt del Mandi Gobindgarh amid thin trade. Mills have also limited buying as daily labourers are yet to return to work after Holi festivities. Steel producers are consuming in-stock inventories to meet their daily production targets.
In the next week, ferrous scrap prices are expected to improve as new construction projects pick pace, said traders and increased construction activity could boost the demand for finished steel in India.
($1 = Rs73.7)