Domestic ferrous scrap prices declined on Monday amid weak demand. Rebar sales were slow and secondary mills preferred to clear available scrap inventories for their melt requirements before booking any more material.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs1,000/mt($13.46/mt) to Rs35,000/mt del Mumbai mills and the index for sponge iron declined by Rs100/mt to Rs31,500/mt del mills.
Markets in the North followed a similar trend, and the daily Davis Index for HMS 1&2 (80:20) declined by Rs600/mt to Rs35,300/mt del Mandi Gobindgarh, while the index for sponge iron declined by Rs700/mt to Rs34,500/mt delivered mills.
Market participants are bearish for the near term, at least until demand for finished steel picks up, which was impacted by the monsoons.
Shipbreaking scrap prices settled unchanged on Monday as the transporters’ strike continued. Yards have slowed demolition activities due to a rise in inventories.
($1=Rs74.2)