Indian domestic ferrous scrap prices rose on Thursday even as global ferrous prices continued their downtrend. Demand for ferrous scrap in India strengthened as steel mills ramped up their production of finished steel to be sold in China after markets reopen in February.
The index for HMS 1&2 (80:20) rose by Rs500/mt($7.01/mt) to Rs23700/mt del Jaipur and the index for sponge iron rose by Rs1000/mt to settle at Rs21,700/mt del Jaipur from Jan 21.
In North India, the daily Davis Index for HMS 1&2 (80:20) rose by Rs225/mt to Rs22,125/mt del Mandi Gobindgarh but the index for sponge iron declined by Rs100/mt to Rs22,550/mt. The index for HMS 1&2 (80:20) rose by Rs300/mt to Rs23,200/mt del Ludhiana on Thursday from Tuesday.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt to Rs22,900/mt del Mumbai mills, driven by increase in demand for billets and the index for billet too rose by Rs700/mt to Rs32000/mt del Mumbai mills. The index for sponge iron in Mumbai settled at Rs20,400/mt, up by Rs100/mt.
The index for HMS 1&2 (80:20) fell by Rs100/mt to Rs23500/mt del Chennai and by Rs125/mt to settle at Rs22,500/mt del Goa, both on global cues.
Demand for finished steel is likely to increase post the union budget announcement on February 1, which could give ferrous scrap prices a lift, said a steelmaker.