Domestic ferrous scrap prices inched up on Friday amid a tight supply. Mills favoured domestic scrap to avoid the transit time over imported scrap.
Scrap collection has dropped in the domestic market as industries have slowed down their activities amid lockdown restrictions and shortage of oxygen.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs900/mt ($12.41/mt) to Rs35,600/mt del Mandi Gobindgarh and the index for sponge iron slipped by Rs350/mt to Rs28,200/mt del mills as scrap was preferred over sponge iron.
Iron ore prices in China have recently improved which boosted India’s market sentiments. Furthermore, tight supply continued to support scrap prices in India.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt to Rs33,800/mt del Mumbai mills and the index for Sponge iron rose by Rs350/mt to Rs28,200/mt del mills.
Market participants remain vigilant about procurement and await a clear price direction while they desperately wait for lockdown to be eased or lifted.
($1=Rs72.4)