Indian domestic ferrous scrap prices declined amid low demand from the secondary steel makers. The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt ($1.35) to Rs23,000/mt del Mumbai mills. The index for Sponge iron declined by Rs100/mt to Rs19,300/mt del Mumbai.
Sponge makers have reduced their offers judging the current market scenario. For finished steel makers the spread between scrap to end product has narrowed. Early September most steelmakers hiked price. HRC prices rose by Rs1,000/mt but end-user demand is still low.
Markets in the North showed similar trend on Friday. The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt to Rs22,000/mt del Mandi Gobindgarh. The index for Sponge iron declined by Rs100/mt to Rs21,700/mt del Mandi Gobindgarh.
With import market getting weaker, HMS prices have already declined by $3/mt cfr India port this week. Market participants expect scrap prices to remain under pressure till demand recovers.