Domestic ferrous scrap prices remained firm on Monday amid tight supply. Mills are waiting for finished steel demand to pickup and limiting raw material buying to daily melt requirements.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs34,000/mt($456/mt) del Mumbai mills and the index for sponge iron declined by Rs500/mt to Rs31,300/mt del mills.
Mills in the North also faced scarcity of ferrous scrap and the daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt to Rs36,100/mt del Mandi Gobindgarh and the index for sponge iron settled flat at Rs34,500/mt del mills.
Market participants are expecting domestic ferrous scrap prices to remain firm in the near term as major mills relying on domestic ferrous scrap over imported due to a wide gap between prices. The index for HMS 1&2 (80:20) UAE origin rose $1/mt to $473/mt cfr Nhava Sheva.