Domestic ferrous scrap continued its downward streak on Wednesday amid subdued demand from mills. Finished steel prices also saw a decline due to low demand from end-users.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs1,000/mt ($13.73/mt) to Rs33,500/mt del Mumbai mills and the index for sponge iron declined by Rs200/mt to Rs29,200/mt del mills.
International offers for ferrous scrap also reduced as Indian steelmakers stayed away. Market participants believe the prices could decline further. Markets in the North also followed a similar trend as mills were buying only on a need basis.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt to Rs35,100/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs750/mt to Rs32,200/mt del mills.
Traders are following wait-and-watch approach as they are still uncertain about price direction. Domestic ferrous scrap prices could improve only if the local demand picks up from the end-users, possibly after lockdown restrictions are lifted or eased.