Ferrous scrap prices in Mumbai remained flat on Wednesday amid tight supply and tepid demand from mills. The daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs34,500/mt ($463.83/mt) del Mumbai mills, and the index for sponge iron fell by Rs700/mt to Rs31,100/mt delivered mills.
Shipbreaking scrap prices in Alang remained unchanged for a second consecutive day as the transportation strike continued.
Demand for finished steel remained low in Mandi Gobindgarh which led to a decline in scrap prices. The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs35,800/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs700/mt to Rs33,800/mt delivered mills.
Indian mills sought clarity on China’s speculated tax increase on steel exports, which could give local mills better export opportunities as domestic demand remained low due to the ongoing monsoon.
Market participants are waiting for monsoons to withdraw before booking more material. A few participants expect ferrous scrap prices to remain firm on tight supply.
($1=Rs74.37)