HMS scrap prices have moved up in central India after the
Orissa mining authorities stopped permits of iron ore to sponge iron manufacturers
outside Orissa. Prices moved up by Rs 100-500/MT in few places like
Raipur, Mandi Gobindgarh and Alang.
Deputy Director Mines,Joda (Orissa) has stopped issuing permits of Iron Ore to sponge plants outside Orissa and all exporters
till 6th November 2011.
HMS (80:20) scrap in Raipur also got dearer due to shortage of sponge iron in the market. Prices moved up by Rs 500/MT with some improvement in demand. However, HMS scrap was traded at Rs
27,200/MT in Mandi Gobindgarh i.e. up by Rs 100/MT due to rise in Ingot prices.
HMS scrap in Hyderabad was traded between the range of Rs
24,700-25,000/MT i.e. up by Rs 200-300/MT from previous quote. Power cuts have
been lifted and production capacities have improved. So, this lifted the demand for scrap slightly.
“Local scrap prices are unlikely to correct soon as
buyers are still preferring scrap over expensive sponge iron. Buying activities will be also good for the next few days before a slowdown due to upcoming festival of Diwali.”
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