Domestic ferrous scrap prices rose in Mumbai on Wednesday with finished steel demand witnessing a marginal uptick.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt ($2.67/mt) to Rs31,700/mt del Mumbai mills, and the index for sponge iron settled flat at Rs29,100/mt delivered mills.
In the North, demand from the ingot makers was weak as finished steel sales were under pressure. The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt to Rs33,900/mt del Mandi Gobindgarh, and the index for sponge iron fell by Rs100/mt to Rs32,300/mt delivered mills.
The indexes for imported ferrous scrap grades declined as mills refrained from purchases. The daily index for UAE-origin HMS 1&2 (80:20) dropped by $5/mt to $455/mt cfr Nhava Sheva.
Market participants expect prices to remain under pressure till the end of the monsoons, usually a low-demand season.