Most Indian domestic ferrous scrap markets were silent on Tuesday, and prices remained under pressure. With semi-finished and finished steel prices losing their steam, mills stayed away from buying material. By the end of the day, however, trading in the landmark Mandi Gobindgarh market had started to gather pace. Prices on Wednesday, therefore, are likely to recover.
Seaborne scrap sellers reduced their offers for South Asian buyers amid these weak domestic fundamentals.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) dropped by Rs150/mt ($2.05/mt) to Rs30,750/mt ($421.51/mt) delivered mill; while the index for Sponge iron settled unchanged at Rs27,600/mt del mill. Sponge manufacturers refused to lower their asking prices and instead focused on dispatching previous bookings. In Ludhiana, the bi-weekly index for busheling and HMS 1&2 (80:20) fell by Rs350/mt each to Rs33,500/mt and Rs29,900/mt del mill, respectively.
The bi-weekly Davis Index for HMS 1&2 (80:20) declined by Rs250/mt to Rs30,000/mt del Chennai mill. Mills could opt for imported scrap, offers for which have started to fall. Buyers could watch the price direction before making more purchases. The index for Sponge iron fell by Rs150/mt to Rs27,000/mt del mill.
In other markets, the daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt to Rs28,000/mt del Mumbai mill, while the index for Sponge iron fell by Rs500/mt to Rs26,600/mt del mill. The bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs300/mt from last Thursday to Rs30,200/mt del Jaipur mill; while the index for Sponge fell by Rs200/mt to Rs29,300/mt del mill.
In Hyderabad the bi-weekly index for HMS 1&2 (80:20) and End cutting fell by Rs500/mt to Rs27,800/mt and Rs29,300/mt del Hyderabad mill, respectively; while the index for Sponge iron fell by Rs250/mt to Rs26,850/mt del mill.