The domestic ferrous scrap market maintained its downtrend due to slack demand for finished steel. Imported scrap prices have fallen by $41/mt since last Friday to $390/mt. The decline also became one of the reasons for weakened sentiment in India.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs750/mt ($10.2/mt) to Rs26,000/mt ($356.2/mt) del Mumbai mill. Buyers shied away from making fresh purchases, anticipating further drop in prices. Sponge iron manufacturers reduced offers to clear off the inventories, but limited trades were reported. The index for Sponge iron fell by Rs375/mt to Rs24,925/mt del mill.
The scenario was no different in Mandi Gobindagarh, where the daily Davis Index for HMS 1&2 (80:20) dropped by Rs550/mt to Rs26,300/mt del mill. The index for Sponge iron declined by Rs400/mt to Rs25,200/mt del mill. Mills are waiting for markets to stabilize in near future.
($1=Rs72.9)