Domestic ferrous scrap prices were under pressure on Friday as mills are buying on a need basis amid fear of a stringent lockdown. The daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt ($6.68/mt) to Rs32,000/mt ($427.9/mt) del Mumbai mills. Offers from Sponge manufacturers also declined from Bellary. The index for Sponge iron dropped by Rs300/mt to Rs28,800/mt del Mumbai mills.
Inspite of low prices, traders expect mills to procure raw material in to fulfil the demand from the end-users.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) fell by Rs400/mt to Rs34,550/mt del mill. Local markets are under pressure due to subdued demand for finished steel. Domestic scrap supply has also been limited because of several movement restrictions. The offers for Sponge iron have dropped by Rs200/mt to Rs30,900/mt del mill from a day prior to stir sales.
The daily Davis Index for Sponge iron declined by Rs250/mt to Rs30,750/mt del mill with limited deals being reported.
($1=Rs74.75)