The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt ($1.36/mt) to Rs29,700/mt ($405.5/mt) del Mandi Gobindgarh mill. Mills have raised ingot prices by almost Rs500/mt to manage the higher input cost due to rising ferrous scrap prices in international as well as domestic market.
The demand for finished steel continues to remain sluggish. The index for Sponge iron dropped by Rs700/mt to Rs28,700/mt del mill with limited deals reported at the index price as most buyers shied away from purchasing at such high levels.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) settled flat at Rs29,550/mt del mill. The Sponge iron manufacturers held back offers amid slow demand. The index for Sponge iron rose by Rs175/mt to Rs28,425/mt due to increase in freight rates. Limited deals were reported at the index price.