Indian domestic ferrous scrap prices remained flat on Wednesday, as steel makers are adopting a wait-and-watch approach ahead of the union budget, due to be announced on Feb 1.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs100/mt($1.40/mt) to Rs22,650/mt del Mandi Gobindgarh. Trades were low in northern India due to mills being shut for the festival of ‘Basant Panchami’. The index for sponge iron remained unchanged at Rs20,450/mt del Mandi.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs142/mt to Rs23,142/mt del Mumbai mills, with a transaction reported at Rs23,200/mt. The index for sponge iron remained unchanged at Rs20,450/mt.
Auto and infrastructure segments are likely to drive the steel market in the near term. Additionally, the 2-5pc import duty on imports of ferrous scrap could also be lowered giving ferrous scrap demand a lift. Across India , ferrous scrap prices remained volatile in January and traders await clarity in the price direction from the upcoming union budget.