Indian domestic scrap prices remained firm on Monday amid healthy demand from mills and a shortage of scrap in local markets. The daily Davis Index for HMS 1&2 (80:20) rose by Rs1,800/mt ($24.88/mt) to Rs29,800/mt del Mumbai mills. Mills are preferring to procure local scrap over imported due to easy availability and competitive-prices.
Demand for Sponge iron also remained firm, the daily Davis Index for Sponge iron settled unchanged at Rs26,300/mt del Mumbai mills.
In Mandi Gobindgarh, traders continued their strike for a sixth consecutive day on Monday. They have completely shut their businesses and vow to remain closed until their demands are met. Scrap producers and traders are protesting against GST compliance issues faced by the industry.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs32,550/mt del Mandi Gobindgarh and the index for Sponge iron settled flat at Rs28,600mt del Mandi Gobindgarh.
Traders are expecting prices to increase in the near term as availability of scrap is low in the domestic market and demand from the end-users is picking up ahead of the Holi festival.