Domestic ferrous scrap prices were flat in Mandi Gobindgarh while rose in Mumbai amid firm demand from the mills as they are focusing more on export markets. Domestic demand is slowly picking up as lockdown restrictions are eased.
The Daily Davis Index for HMS1&2 (80:20) settled flat at Rs37,700/mt ($517.8/mt) del Mandi Gobindgarh and the index for sponge iron rose by Rs400/mt to Rs34,100/mt del mills.
Availability of local scrap is scarce, and mills are currently on a wait and see mode before they book imported scrap. Trades are however expected to resume ahead of monsoon as mills would need to stock up their inventories given an expected uptick in domestic demand in the near term.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt to Rs34000/mt del Mumbai mills and the index for sponge iron declined by Rs300/mt to Rs31000/mt del mills.
Market participants are expecting ferrous scrap prices to improve in the near term amid its shortage and domestic demand will be picking up due to the easing of restrictions.
($1=Rs72.80)