Domestic ferrous scrap prices in Mumbai moved up on Friday amid shortage. Inventories with mills has depleted with most looking to buy domestic scrap over imported amid elevated freight rates and soaring offers.
Large-scale mills continued to explore export markets as domestic demand is low. China resumed its buying after the Labor Day holidays which has instilled optimism among Indian mills.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs1,000/mt ($13.6/mt) to Rs36,800/mt del Mumbai mills and the index for Sponge iron declined by Rs400/mt to Rs29,700/mt del mills.
Mills in the north were seen buying ferrous scrap on a need basis as steel demand from the end users is still low. The daily Davis Index for HMS 1&2 (80:20) declined by Rs250/mt to Rs36,800/mt del Mandi Gobindgarh and the index for Sponge iron settled flat at Rs32,000/mt del mills.
Traders expect ferrous scrap prices to trend upwards in the coming days on continued shortage and higher import offers.