Domestic ferrous scrap prices settled flat in Mandi Gobindgarh and rose in Mumbai on Wednesday. Demand from finished steel makers was on a gradual uptrend as the supply of scrap remained limited which kept prices firm.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt($4.04/mt) to Rs35,000/mt del Mumbai mills and the index for sponge iron declined by Rs600/mt to Rs30,700/mt del mills amid a fall in input cost.
Markets in the North saw firm demand from ingot makers while few mills procured material on a need basis. Scrap suppliers kept their offers unchanged on Wednesday to boost trades. The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs35,600/mt del Mandi Gobindgarh and the index for sponge iron also remained unchanged at Rs35,400/mt del mills.
Market participants believed ferrous scrap prices could strengthen in the near term as the scarcity of local scrap continues to widen.