Domestic ferrous scrap prices inched up in Mandi Gobindgarh but were unchanged in Mumbai on Wednesday. Mills preferred procuring domestic scrap over imported to reduce the transit time.
The daily Davis Index for HMS 1&2(80:20) rose by Rs500/mt ($6.83/mt) to Rs36700/mt del Mandi Gobindgarh and the index for sponge iron rose by Rs500/mt to Rs33,200/mt delivered mills.
The ongoing auction of Odisha Mining Corporation has impacted the prices for sponge iron with the iron ore prices going up by Rs1,500/mt.
Mills in Mumbai are were in a wait-and-watch mode as demand from the end-users has not yet picked up due to the lockdown extension in Maharashtra. The daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs33,500/mt del Mumbai mills, and the index for sponge iron rose by Rs1,000/mt to Rs29,700/mt del mills due to the rise in input cost.
Market participants in the North are bullish on a shortage of scrap. Mills expect a further hike in the finished steel prices as most of the players are exploring export opportunities.