Prices for domestic ferrous scrap in India are expected to rise in the near term, as inventories with most mills have started to deplete. Imported scrap trades grained momentum early this week after a month-long hiatus. Short supply of domestic scrap has driven many buyers towards imported scrap. But for mills struggling with sluggish finished steel demand, lower-priced domestic scrap could help reduce input cost.
In Mumbai, the daily Davis Indexes for HMS 1&2 (80:20) and sponge iron settled unchanged at Rs21,200/mt ($283.28/mt) and 17,000/mt ($227.16/mt) del mill, respectively. Limited trades were reported at the index price.
The index for HMS 1&2 (80:20) rose by Rs100/mt to Rs20,400/mt del Mandi Gobindgarh mill and the index for sponge iron settled unchanged at Rs19,200/mt del mill. Trades were very few. But next week, most mills are likely to be in the market for ferrous scrap.