Indian domestic ferrous scrap prices rose on Monday in Mandi Gobindgarh and settled flat in Mumbai. Firm demand from the mills supported prices in the North but in Maharashtra, mills were buying on a need basis.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs200/mt ($2.72/mt) to Rs34,950/mt del Mandi Gobindgarh amid continued tight supply in the domestic market and dip in mill inventories.
The offers for Sponge iron rose by Rs1,000/mt to Rs31,600/mt del mill, compared to Friday, while bids were Rs30,600/mt.
The index for Sponge iron rose by Rs950/mt to Rs31,100/mt del Mandi Gobindgarh. The price rise was fuelled by a hike in iron ore royalty by Rs1,300/mt.
The state government of Maharashtra has imposed restrictions and closed several commercial activities till April 30. A curfew is imposed from 8pm to 6am restricting the movement of people.
The manufacturing sector is exempt from these pandemic restrictions, however, a huge spike in COVID-19 cases has turned mill owners cautious and most have adopted a wait and watch strategy before procuring raw material.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs31,500/mt del Mumbai mills and the index for Sponge iron rose by Rs400/mt to Rs29,100/mt del Mumbai.