Prices for ferrous scrap in Mandi Gobindgarh and Mumbai markets rose on Monday following the global market. Turkish mills have resumed bookings for September shipments and last week the index for US-origin HMS 1$2 (80:20) rose by $8.83/mt from Aug 24 to $289.81/mt cfr Turkey on Aug 28. The resulting rise in imported ferrous scrap offers has impacted domestic prices.
In Mandi Gobindgarh, the index for HMS 1$2 (80:20) rose by Rs800/mt ($10.87/mt) from Friday to Rs22,700/mt ($308.66/mt) del mill and the index for sponge iron increased by Rs200/mt to Rs22,200/mt del mill. A shortage of material has also added to the rise in prices.
In the Mumbai market, the index for HMS 1$2 (80:20) rose by Rs400/mt to settle at Rs23,600/mt delivered mill and the index for sponge iron rose by Rs700/mt to Rs20,400/mt del mill.
With major steelmakers increasing product prices, market sentiment is positive. Additionally, with India going into the unlock phase, construction activity is expected to rise. Automakers too have ramped up production expecting good sales during the festive season of Diwali in November.
($1=Rs73.54)