Indian domestic ferrous scrap prices continued to decline on Friday. Scrap yards reduced offers, however, mills stayed away from purchasing as they await clarity in price direction amid subdued demand for finished steel.
In Mumbai, the daily index for HMS 1&2 (80:20) dropped by Rs950/mt ($12.47/mt) to Rs19,050/mt del mills and the index for sponge iron declined by Rs200/mt to Rs15,800/mt del mills. Mills are lowering production in response to weak demand.
The daily Davis Index for HMS 1&2 (80:20) dropped by Rs 100/mt to Rs20,000/mt del Mandi Gobindgarh amid thin trades. The daily index for sponge iron declined by Rs100/mt to Rs19,050/mt del mills.
A spike in COVID-19 cases in major cities and industrial regions has become a cause of concern for local governments. Market participants have turned cautious and are sticking to need-based purchases to avoid cash flow hiccups.
($1= Rs 76.16)