Prices for ferrous scrap in Mumbai and Mandi Gobindgarh market ceased their fall and remained unchanged on Wednesday. The daily Davis Index for HMS 1&2 (80:20) settled at Rs22,800/mt ($309.11/mt) del Mumbai mill and Rs21,400/mt ($290.13/mt) del Mandi mill, both unchanged.
The indexes for sponge iron in Mumbai and Mandi also settled flat at Rs18,700/mt and Rs21,000/mt delivered mill, respectively.
Most secondary mills are still facing a cash crunch. Input costs have gone up as most mills are forced to buy oxygen cylinders at higher prices amid short supply. Demand for finished steel, on the other hand, has eluded most steelmakers who are now eyeing mid-October, when some market participants predict a revival.
In Punjab, mills would also get a rebate of 50paise/unit on power tariff during night hours from Oct 1. This could provide a respite for the struggling sector.