Domestic ferrous scrap prices rose in Mumbai amid tight supply and firm demand from steelmakers. The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt ($4.09/mt) to Rs34,500/mt del Mumbai mills and the index for sponge iron rose by Rs800/mt to Rs32,100/mt del mills.
Mills are procuring raw material on a need basis and are reluctant to stock up since the arrival of monsoon, which could put pressure on domestic finished steel sales.
Markets in the North saw ingot prices decline on Monday as sales of finished steel were low. Ferrous scrap suppliers also reduced offers to attract bids.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs600/mt to Rs37,800/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs400/mt to Rs34,000/mt del mills.
Market participants are expecting ferrous scrap prices to remain firm in the near-term amid shortage and increase in export orders for billets. As lockdown restrictions have been eased in many states, it is boosting marketing sentiments.