Indian domestic ferrous scrap prices in most markets were flat to up on Thursday amid a shortage of material and weak demand for steel.
The daily Davis Index for HMS 1&2 (80:20) in Mumbai settled flat at Rs33,575/mt ($453.09/mt) del Mumbai mills and the index for sponge iron rose by Rs300/mt ($4.04/mt) to Rs29,300/mt ($395.37/mt) del mills.
The bi-weekly Davis Index for HMS 1&2 (80:20) and sponge iron settled flat at Rs34,750/mt and Rs30,500/mt del Chennai mill, respectively, with very few deals.
Steelmakers continued to face a shortage of oxygen and steel production in most states has declined by 25pc at the minimum. Thus, ferrous scrap demand has also declined. But supply tightness has kept prices from declining.
In Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) rose by Rs625/mt to Rs35,875/mt del mill. Lockdowns or stringent movement restrictions in most parts of the country have impacted transportation. The index for Sponge iron dropped by Rs200/mt Rs31,700/mt del Mandi mill.