In Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) dropped by Rs200/mt ($2.68/mt) to Rs35,250/mt del mill on Wednesday amid weak finished steel demand. Mills stare at stricter and extended lockdowns which might impact steel prices. Moreover, manufacturing has slowed down because of a lack of oxygen supply. Limited deals were heard at the current price levels.
The index for Sponge iron dropped by Rs200/mt Rs31,900/mt del mill on Tuesday. Limited deals were reported at these levels.
Ferrous scrap prices in Mumbai rose on Wednesday amid tight supply. Mills were looking to procure scrap from the local market amid rising freight rates for imported scrap. The daily Davis Index for HMS 1&2 (80:20) rose by Rs775/mt to Rs33,575/mt del Mumbai mills. The index for Sponge iron declined by Rs300/mt to Rs29,900/mt del Mumbai mills
Market participants are still optimistic of support for high ferrous scrap prices as most steel mills are tapping the export market. Shortage of scrap and firm demand from the mills could improve ferrous scrap prices in the near term.