Domestic ferrous scrap prices declined on Thursday in most regions on sluggish steel demand. Large-scale mills have turned to the export markets to liquidate piled-up stocks of finished steel.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt ($6.70/mt) to Rs33,000/mt del Mumbai mills, and the index for sponge iron fell by Rs100/mt to Rs30,500/mt delivered mills.
Mills in Jalna refrained from stocking raw material with finished steel sales under pressure. Scrap sellers thus tried to lower asking prices to induce demand. The bi-weekly index for HMS 1&2 (80:20) declined by Rs500/mt to Rs33,000/mt del Jalna mills, and the index for sponge iron settled flat at Rs31,500/mt delivered mills.
Demand for steel in Mandi is still low as monsoons have advanced to the northern part of the country. Mills procured scrap only to meet their daily melt requirements. The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt to Rs33,300/mt delivered to Mandi Gobindgarh mill, and the index for sponge iron settled flat at Rs32,200/mt delivered mills.
In the East, domestic demand is under pressure, but a supply crunch kept ferrous scrap prices from falling. The bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs34,000/mt del Durgapur mills, and the index for sponge iron settled flat at Rs28,800/mt del mills until the time of the publication. Late in the afternoon, sponge iron offers were heard at Rs29,200/mt delivered mills.
The bi-weekly index for HMS 1&2 (80:20) declined by Rs500/mt to Rs32,000/mt del Goa mills, and the index for sponge iron fell by Rs200/mt to Rs29,800/mt delivered mills.
The sentiment in South India was also bearish, and the bi-weekly index for HMS 1&2 (80:20) declined by Rs100/mt to Rs33,400/mt del Chennai mills, and the index for sponge iron declined by Rs100/mt to Rs29,600/mt delivered mills.
($1=Rs74.5)