Indian domestic scrap prices Monday settled flat at Mandi Gobindgarh while marginally up in Mumbai. The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs22,500/mt ($306.33/mt) del Mandi Gobindgarh with a few trades reported at the index price.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs50/mt ($0.68/mt) to Rs23,800/mt ($324/mt) del Mumbai mills as rains took a break on Monday.
Sponge iron prices across India are rising amid an increase in input costs. Ore mines in Odisha which were auctioned in March are yet to start production. This delay along with heavy rain in some parts of central India have created cut iron ore output by around 4mn mt per month. Iron ore production in India dropped by 40pc in April-June from the prior period.
State-owned miner NMDC hiked iron ore prices by Rs300/mt late last week which also lifted sponge iron prices. The daily Davis Index for sponge iron rose by Rs300/mt to Rs20,300/mt del Mumbai mills and the index for sponge iron in Mandi Gobindgarh rose by Rs200/mt to Rs22,800/mt del mills.
Traders are expecting demand for raw material to pick-up in the near term as consumption from the auto sector is gradually increasing, however, the construction sector is yet to catch up in some region due to monsoon.