Domestic ferrous scrap prices rose in Mandi Gobindgarh while it settled unchanged in Mumbai. Shortage of scrap in the local market continued, which kept prices on an uptrend.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt ($6.85/mt) to Rs37,500/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs400/mt to Rs33,700/mt del mills as steelmakers were inclined towards buying scrap over sponge iron.
Heavy rainfall in Mumbai has slowed down transportation activity which kept the ferrous scrap prices flat amid low demand and tight supply.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs34,000/mt del Mumbai mills and the index for sponge iron declined by Rs150/mt to Rs30,500/mt del mills.
Market participants expect scrap prices to remain firm in the near-term amid shortage, as mills are gradually using up their raw material inventories.