Indian domestic ferrous scrap prices rose on Monday, as manufacturers opted for domestic scrap over imported to cut freight costs .
The daily Davis Index for HMS 1&2 (80:20) rose by Rs350/mt ($4.89/mt)to Rs23,200/mt del Mumbai mill, with a transaction reported at Rs23,200/mt.
The index for sponge iron increased by Rs250/mt to Rs20,450/mt del Mumbai with a transaction reported at Rs20400/mt.
Ferrous scrap prices remained tepid as of last week, but steelmakers, on Monday, were said to be willing to pay premium charges to stock up on inventories ahead of the annual budget on Feb 1.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs400/mt to Rs22,700/mt del Mandi Gobindgarh on Monday. Steel makers opened the week buying available local scrap due to quicker delivery times.
The index for sponge iron declined by Rs700/mt to Rs22,700/mt del Mandi with steel mills opting to buying ferrous scrap, pushing sponge iron prices lower.
The market is expecting a ramp up in steel demand to drive ferrous scrap prices higher this week.