Domestic ferrous scrap prices across India rose driven by an increase in global ferrous scrap prices.
Demand for raw materials increased as the ministry of steel is paving the way to boost domestic production through a zero-import paradigm policy shift for the Railway and Defence sectors.
The daily Davis Index for HMS 1&2 (80:20) settled at Rs23,100/mt($322.9) up by Rs50/mt del Mumbai mills.
The daily index for sponge iron remained unchanged at Rs20,000/mt del Mumbai.
The index for HMS 1&2 (80:20) increased by Rs600/mt to Rs23,400/mt del Indore and transactions were reported at the index price.
The index for sponge iron increased by Rs1000/mt to Rs21,500.
In North India, the daily Davis Index for HMS 1&2 (80:20) dropped by Rs304/mt to Rs22,079/mt del Mandi Gobindgarh, as trading thinned.
The index for sponge iron rose by Rs200/mt to Rs22,000/mt del Mandi Gobindgarh.
In Southern India, the bi-weekly index for HMS 1&2 (80:20) rose by Rs250/mt to Rs21,750/mt and transactions were reported in the range Rs21,500-22,000/mt.
The index for sponge iron remained unchanged at Rs19,800/mt.
Ferrous scrap prices are likely to go up in the near term on a rise in demand for finished steel from the Railways and Defence sector, according to the market participants.
($1 = Rs71.5)