After a lull last week, ferrous scrap prices opened the week with an uptick. A gradual rise in demand has supported prices. Sponge iron prices, however, were bullish with a rise in input cost.
In Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) rose by Rs200/mt ($2.73/mt/) from Friday to Rs22,500/mt ($306.99/mt) del mill, while the index for sponge iron increased by Rs600/mt to Rs22,000/mt del mill.
Late last week, Indian state-owned miner NMDC raised prices for iron ore lumps and fines by Rs200/mt. Total price rise for both has been around Rs1,000/mt since July 2020. International iron ore prices too have been on an uptrend this year. The effect of these price rises has boiled down to increased input costs for sponge iron producers.
In Mumbai, the index for sponge iron increased Rs800/mt to Rs20,200/mt del mill and the index for HMS 1&2 (80:20) rose by Rs200/mt to Rs23,600/mt del mill. For the next few days, the market could remain strong as mills are likely to restock material.