Domestic ferrous scrap prices in Mumbai settled flat and declined in Mandi Gobindgarh on Wednesday. Mills in Mumbai kept a close watch on markets and procured scrap on a need basis.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs36,000/mt($484.83) del Mumbai mills as supply remained tight, the index for sponge iron also remained unchanged at Rs31,900/mt del mills.
Mills in the North witnessed a slump in ingot sales in the first half of the day, post which, the daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt to Rs36,400/mt del Mandi Gobindgarh and later in the day, offers rose by Rs200/mt del mills. The index for sponge iron declined by Rs100/mt to Rs36,100/mt del mills.
Market participants believed; ferrous scrap prices could remain firm due to limited supply. Demand for finished steel could increase as monsoon recedes.