Indian domestic ferrous scrap prices fell further by Rs200-300/mt on Tuesday amid weak demand and thin trades.
The bi-weekly index for HMS 1&2 (80:20) fell by Rs950/mt ($12.99/mt) to Rs23,500/mt del Ahmedabad and the index for sponge iron declined by Rs958/mt to Rs20,242/mt del Ahmedabad. Sponge iron manufacturers lowered their offers by Rs300-400/mt as demand remained subdued.
In Indian domestic markets, ferrous scrap supply was scarce. This, however, did not reflect in prices amidst low demand for finished steel and a resultant drop in ferrous scrap bookings. Traders were also unwilling to book imported scrap due to devaluation of Indian rupee against the US$. The value of Indian rupee which was Rs71.97 to $1 on Feb 26, stood at Rs73.10 to $1 on Mar 3.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs225/mt to Rs22,100/mt del Mandi Gobindgarh and the daily index for sponge iron settled at Rs21,775/mt up by Rs50/mt del Mandi Gobindgarh.
In southern India, the bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs21,975/mt del Chennai and the index for sponge iron settled at Rs20000/mt del Chennai, also flat.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs100/mt to Rs23,150/mt del Mumbai mills and the index for sponge iron settled unchanged at Rs19,400/mt del Mumbai mills.
The bi-weekly index for HMS 1&2 (80:20) declined by Rs500/mt to Rs23,000/mt del Jalna and the index for sponge iron fell by Rs200/mt to Rs20,050/mt del Jalna.
With Indian finished steel markets sluggish, traders expect scrap prices to remain under pressure even in the coming days.
($1 = Rs73.10)