Domestic ferrous scrap prices in India remained subdued amid sluggish demand for finished steel in the infrastructure sector. Mills faced cash crunch as their debtors are yet to clear dues.
The daily Davis Index for HMS 1&2 (80:20) settled at Rs23,050/mt ($321.65/mt) del Mumbai mills, down by Rs50/mt. The daily index for sponge iron declined by Rs100/mt to Rs19,900/mt del Mumbai.
In the North, the daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt to Rs22,100/mt del Mandi Gobindgarh on a shortage of raw materials and bullish global ferrous scrap prices.
Buying activity picked up in the Turkish ferrous scrap market and mills booked several cargoes. Around 25 cargo trades were reported last week, after which market took a breather. Ten more cargoes are under negotiation currently. Indian markets are likely to remain silent until these deals are finalised which will give them a price direction.
In southern India, the bi-weekly index for HMS 1&2 (80:20) settled at Rs21,775/mt del Chennai down by Rs25/mt as buyers refrained from trades. The index for sponge iron remained unchanged at Rs19,800/mt on Thursday.
The index for HMS 1&2 (80:20) declined by Rs400/mt to Rs22,000/mt del Goa and the index for sponge iron declined by Rs700/mt to Rs19,300/mt del Goa.
In the domestic market, ferrous scrap prices are likely to remain flat for the next few days till mills ramp up production.