Prices for domestic ferrous scrap in India went up on Wednesday amid expectations of a rise in finished steel prices. Some major integrated steel makers are likely to raise prices for flat products by Rs1,000/mt in September, supporting scrap sellers to increase offer price. Besides, a rise in prices for the US-origin HMS 1&2 (80:20) in Turkey by around $3.49/mt on the back of increased buying also had some bearing on domestic scrap prices.
In Mandi Gobindgarh, the daily indexes for sponge iron and HMS 1&2 (80:20) rose by Rs400/mt ($5.38/mt) to Rs22,400/mt ($301.52/mt) and Rs22,300/mt del mill, respectively. While in Mumbai, the indexes for HMS 1&2 (80:20) and sponge iron rose by Rs200/mt to Rs23,300/mt and Rs20,000/mt del mill, respectively.
Some market participants believe demand for finished steel remains slow and raised prices are unlikely to sustain. Though the Indian government has announced infrastructure projects and affordable housing schemes, its implementation could take a few months.
($1=Rs74.29)