Domestic ferrous scrap prices settled flat in Mumbai and declined in Mandi Gobindgarh on Monday. Overall demand for finished steel is weak in the domestic market and mills are cautiously buying ferrous scrap as per immediate requirements.
The daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs35,000/mt($478/mt) del Mumbai mills amid tight supply and limited demand. The index for sponge iron declined by Rs200/mt to Rs30,300/mt del mills.
Markets in the North witnessed low demand for ingot which led ferrous scrap suppliers to reduce their offers to attract bids. The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt to Rs35,000/mt del Mandi Gobindgarh, while the index or sponge iron declined by Rs600/mt to Rs33,500/mt del mills.
Market participants are on a wait-and-watch mode as demand for finished steel is expected to remain under pressure in September due to festivities.
($1=Rs73)