Domestic ferrous scrap prices lost steam on Monday, especially in North India. Trades have dipped since steel demand, particularly in the construction sector, has slowed, pulling down scrap prices. The winter fog hampers construction activities in the northern part of the country.
In Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) fell by Rs400/mt ($5.40/mt) from Friday to Rs28,000/mt ($378.44/mt) delivered mill, while the index for Sponge iron declined by85/mt to Rs28,650/mt del mill. Most mills are waiting for January to see how demand revives before restocking ferrous scrap.
In Mumbai, the index for HMS 1&2 (80:20) continued to trend up and rose by Rs200/mt to Rs29,000/mt del mill. But the index for Sponge iron declined by Rs100/mt to Rs28,100/mt del mill. Demand for scrap has continued to outpace supply in the city resulting in firm prices.
State-owned primary steel producer RINL hiked rebar and coil prices by Rs1,000-1,500/mt over the weekend. The move instilled positive sentiment in some markets.