Indian domestic ferrous scrap prices dropped on Tuesday as demand for finished steel dwindles. In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) declined by Rs 200/mt ($2.62/mt) to Rs20,400/mt ($267.96/mt) del mills. The daily index for sponge iron remained unchanged at Rs19,600/mt del mills.
Scrap prices in Ludhiana rose amid a scarcity of scrap. The Davis Index for HMS 1&2 (80:20) rose by Rs750/mt to Rs22,000/mt del mills with trades heard at the index price. The index for end cuttings rose by Rs1,250/mt to Rs25,000/mt del mills and the index for sponge iron declined by Rs25 to Rs18,050/mt del mills. A few trades were heard at Rs18,000-Rs18,001.
Even though construction activities begun after a long hiatus in several regions as lockdown norms have been relaxed, infrastructure and construction projects are likely to be delayed by at least five to six months. The onset of monsoon along with cash crunch and labour shortage remains pertinent problems. This would further dampen the demand for finished steel.
In Hyderabad, the Index for HMS 1&2 (80:20) dropped by Rs500/mt to Rs21,000/mt del mills and the index for sponge iron declined by Rs50/mt to Rs17,400/mt del mills.
In Durgapur, the index for HMS 1&2 (80:20) dropped by Rs500/mt to Rs22,500/mt del mills. The index for sponge iron declined by Rs1,300/mt to Rs15,500/mt del mills. Few deals were reported at the index price.
In Mumbai, trades thinned amid diminishing demand. The daily index for HMS 1&2 (80:20) fell by Rs750/mt to Rs20,000/mt del mills and the index for sponge iron declined by Rs200/mt to Rs16,400/mt del mills.
In Goa, trades for sponge were concluded at index price. The index for HMS 1&2 (80:20) fell by Rs1,050/mt to Rs 20,450/mt, del mills and the index for sponge iron remained unchanged at Rs16,500/mt del mills.
In Indore, index for HMS 1&2 (80:20) dropped by Rs1,150/mt to Rs21,700/mt del mills and the index for sponge iron fell by Rs1,200/mt to Rs18,300/mt del mills.
($1= Rs76.12)