The daily Davis Index for HMS 1&2 (80:20) declined by Rs750/mt ($10.25/mt) to Rs28,250/mt ($386.12/mt) del Mumbai mill amid continued oversupply. Demand for finished steel was sluggish for a second successive week which has impacted scrap purchases.
In December, most steelmakers had ramped up production in hopes of healthy steel demand continuing through January. But a rise in steel prices by around 55pc in the past six months has resulted in a standoff between mills and end-users, who are calling out for a steel price regulator. Steel demand and prices are thus under pressure, with an impact on ferrous scrap trades.
Mumbai mills have inventories to meet their present production levels and stayed away from purchases as they anticipate prices to fall further. The index for sponge iron settled unchanged at Rs28,600/mt del mill due to limited activity ahead of the Makar Sankranti holiday. Bookings could pick up from Monday, January 18.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) fell by Rs750/mt to Rs27,850/mt del mill as market activity slowed due to Lohri and Makar Sankranti festivals this week. The index for Sponge iron settled unchanged at Rs27,900/mt del mill.
($1=Rs73.16)