Prices for ferrous scrap this week have remained range-bound in the domestic market this week with marginal ups and downs. On Friday, prices for HMS 1&2 (80:20) in Mumbai increased but remained unchanged in Mandi Gobindgarh.

 

The daily Davis Index for HMS 1&2 (80:20) rose by Rs250/mt ($3.14/mt) to Rs23,750/mt ($324.70/mt) del Mumbai mill, while the index for sponge iron declined by Rs200/mt to Rs20,000/mt del mill.

 

Although major primary mills in the country have raised steel prices, secondary steelmakers believe these are unsustainable since downstream demand is still under pressure.

 

In Mandi Gobindgarh, the daily index for HMS 1&2 (80:20) and sponge iron settled unchanged at Rs22,500/mt and Rs22,600/mt delivered mill, respectively.

 

With the Indian government gradually easing pandemic restrictions, construction activity is expected to gain momentum. Most mills, therefore, believe demand for long steel is expected to rise in the coming weeks. Moreover, as the Diwali festival in November closes in, demand for automobiles is also expected to rise giving flat steel trades a push.

 

($1=Rs73.14)

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