Domestic ferrous scrap prices rose on Monday in the Western and Northern regions of India as supply remained tight. Demand from local mills was limited as steel consumption from end-users has declined due to strict lockdowns.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs1,200/mt ($16.36/mt) to Rs38,000/mt del Mandi Gobindgarh and the index for sponge iron rose by Rs300/mt to Rs32,300/mt del mills.
Ferrous scrap prices in Mumbai were also firm amid shortage, with mills looking to procure local scrap over imported as international offers are high. The index for UEA-origin HMS 1&2 (80:20) cfr Nhava Sheva rose by $10/mt to $468/mt.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt to Rs36,500/mt del mills and the index for sponge iron rose by Rs500/mt to Rs30,200/mt del mills.
Market participants expect ferrous scrap prices to rise further amid global cues and shortage. Mills are also focusing more on exports, as demand in India will remain low till the lockdown is lifted from all regions.