Indian domestic ferrous scrap prices continued to fall on weak demand for finished steel.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) declined by Rs400/mt ($5.25/ mt) to Rs20,600/mt ($270.82/mt) del mills. Transactions were heard at the index price. The daily index for sponge iron dropped by Rs350/mt to Rs19,600/mt del mills.
Manufacturers struggled to ramp up operations due to a labour shortage. Workers, on the other hand, mulled their return to larger cities as COVID-19 cases in these areas continued to rise.
In Mumbai, the daily index for HMS 1&2 (80:20) dropped by Rs300/mt to Rs20,750/mt del mills and the index for sponge iron declined by Rs300/mt to Rs16,600/mt del mills. A few deals were heard at the index price.
Market participants feel prompt resumption of stalled construction and infrastructure projects could boost steel demand in the near term.
($1= Rs 76.06)