Domestic ferrous scrap prices continued to decline on Tuesday amid low demand for finished steel. Mills were away from stocking raw material inventories and focused on clearing piled-up finished steel stock.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt ($6.72/mt) to Rs34,300/mt del Mandi Gobindgarh, and the index for sponge iron was down by Rs200/mt to Rs33,000/mt delivered mills.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs33,500/mt del Mumbai mills, and the index for sponge iron declined by Rs200/mt delivered mills. Although finished steel sales remain weak in the region, a severe shortage of domestic ferrous scrap kept prices from falling.
Scrap suppliers in Jalna reduced their offers to boost trading. A few mills plan to idle their furnaces amid margin squeeze. The bi-weekly index for HMS 1&2 (80:20) declined by Rs550/mt from last Friday to Rs33,500/mt del Jalna mills, and the index for sponge iron fell by Rs800/mt to Rs31,900/mt delivered mills.
The bi-weekly index for HMS 1&2 (80:20) declined by Rs500/mt to Rs35,500/mt del Durgapur mills and the index for sponge iron declined by Rs1,450/mt to Rs28,000/mt delivered mills.
Mills in the South were also away from bookings, and the bi-weekly index for HMS 1&2 (80:20) declined by Rs1,000/mt to Rs34,500/mt del Chennai mills, and the index for sponge iron declined by Rs1,200/mt to Rs28,500/mt delivered mills.
($1=Rs74.3)