Domestic ferrous scrap prices in Mandi Gobindgarh and Mumbai rose again on Friday.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt ($2.71/mt) to Rs23,200/mt ($315.03) del Mandi Gobindgarh. The index for Sponge iron rose by Rs400/mt to Rs22,900/mt del Mandi Gobindgarh.
Sponge iron prices have been firm for the past few days due to increased iron ore exports and resulting shortage. Many merchant miners in the country are also yet to start operations at their allocated mines. A cumulative impact has been hurting Sponge iron producers, and thereby steelmakers.
Mills in Mumbai returned to the market on Friday, and thus, the daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt to Rs24,200/mt delivered mill, while the index for Sponge iron settled unchanged for yet another day at Rs21,000/mt delivered mill.
Demand for rebar has started strengthening in the Indian markets, which could keep prices firm in the coming days.