Mills shied away from purchases and plan utilize their stocked ferrous scrap inventories to cater to the limited demand amid a rise in domestic as well as imported scrap prices. The daily Davis Index for HMS 1&2 (80:20) dropped by Rs800/mt ($10.803/mt) to Rs24,700/mt ($333.54/mt) delivered Mandi Gobindgarh mill, while the index for Sponge iron fell by Rs600/mt to Rs26,900/mt delivered mill. Sponge iron prices are likely to drop in the near term as iron ore supply is likely to ease with the resumption of operations at Serajuddin’s Balda mine in Orissa.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) settled flat at Rs25,500/mt ($341.85/mt) del mill. The index for sponge iron settled at Rs25,950/mt del mill.