Indian domestic ferrous scrap prices declined on Monday, pressured by weak demand for finished steel. With piled up steel inventories, mills have now slowed down their production.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs500/mt($6.90/mt) to Rs23,050/mt del Mumbai mills. The index for sponge iron fell by Rs200/mt to Rs19,400/mt del Mumbai.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs150/mt to Rs22,325/mt del Mandi Gobindgarh. The index for sponge iron fell by Rs575/mt to Rs21,725/mt del Mandi Gobindgarh. Though bookings were limited, steel makers preferred scrap over sponge iron.
Traders believe domestic ferrous markets are likely to remain slow even in the coming days until demand for finished steel picks up.
($1 = Rs72.3)