Ferrous scrap prices rose in Mandi on Monday amid revival in demand from ingot makers. The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt ($2.69/mt) to Rs36,200/mt del Mandi Gobindgarh and the index for sponge iron settled flat at Rs34,000/mt del mills.
Traders are wary of market demand sustaining as finished steel sales are still low in the domestic market due to the monsoon season. Market participants preferred to wait for a clear price direction before they stock scrap.
Transportation companies in Mandi Gobindgarh are planning to go on a strike on Tuesday amid rise in fuel prices which could impact the transit time and freight rates. Petrol and diesel prices have reached a record-high levels in India.
Markets in the West witnessed low finished sales which prompted ferrous scrap suppliers to reduce their offers to attract bids. The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt to Rs34,000/mt del Mumbai mills and the index for sponge iron declined by Rs200/mt to Rs30,900/mt del mills.