The Davis Index for HMS 1&2 (80:20) rose by Rs450/mt ($6.01/mt) from Friday to Rs20,850/mt ($278.79/mt) del Mandi Gobindgarh mill on Monday. The index for sponge iron rose by Rs600/mt to Rs19800/mt del mill.
Fearing a further rise in prices, mills have started stocking up raw material. Prices were also supported by a bullish import market and shortage of domestic scrap.
Construction activity is expected to pick up from September. Mills are thus gearing up to produce construction steel to cater to the demand which is set to arise after work on these stalled projects gains momentum.
In Mumbai, the index for HMS 1&2 (80:20) rose by Rs400/mt to Rs21,600/mt del mill and the index for sponge iron surged Rs1,200/mt to Rs18,200/mt del mill.