Indian domestic ferrous prices fell across India on Friday amid subdued demand for finished steel and weak global cues.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs869/mt ($11.75/mt) to Rs20,650 ($279.3/mt) del Mandi Gobindgarh. Trades were thin. Ferrous scrap suppliers lowered their offers by Rs400-500/mt. The daily index for sponge iron fell by Rs725/mt to Rs20,250/mt del Mandi Gobindgarh.
Despite a shortage of domestic ferrous scrap, steel mills are not keen on buying imported scrap. The Davis index for shredded scrap Friday settled at $301/mt cfr Nhava Sheva, down by $4/mt from a week ago as mills await the domestic steel demand to improve.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt to Rs23,050/mt del Mumbai mills and the index for sponge iron fell by Rs500/mt to Rs18,900/mt del Mumbai mills.
Ferrous scrap prices are expected to remain flat to down in the near term. A pick up in construction activities in summer could increase the demand for finished steel and lift-up scrap prices.
($1= Rs73.8)