The Mumbai scrap market broke its silence on Friday. A major mill booked HMS 1&2 (80:20) to restock its falling inventories, driving prices up in the city. The daily index for the grade rose by Rs1,100/mt ($14.54/mt) to settle at Rs20,100/mt del mill amid a shortage of scrap. The index for sponge iron settled at Rs15,700/mt del Mumbai mill, down by Rs200/mt.
A rise in ingot prices in Mandi Gobindgarh since late Thursday gave domestic ferrous prices a lift. But demand remains tepid and prices are likely to come under pressure very soon.
The daily Davis Index for HMS 1&2 (80:20) settled at Rs20,450/mt del Mandi Gobindgarh mill, up by Rs250/mt and the index for sponge iron rose by Rs100/mt to 19,200/mt del mill. Most traders believe this spike in prices is temporary and unlikely to sustain. Mills continue to work at reduced capacities amid sluggish semi-finished and finished steel demand, and thus trades could remain hit till downstream steel demand ramps up.