The daily Davis Index for HMS 1&2 (80:20) declined by Rs800/mt ($10.95/mt) to Rs26,100/mt ($357.15/mt) del Mandi Gobindgarh mill. Mills have their eyes set on the outcome of the new budget before booking healthy tonnages. Demand for finished steel continued to remain sluggish, with activities in the real estate and infrastructure sector still failing to gain pace. Mills even expect a decline in landed cost for imported ferrous scrap with the government exempting customs duty on steel scrap till 2022.
The index for Sponge iron fell by Rs500/mt to Rs24,400/mt del mill. Manufacturers reduced offers to clear off their piled-up inventory as mills have been opting for scrap over Sponge iron due to its price-efficacy.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt to Rs26,500/mt del mill. Buyers have been opting for scrap over Sponge iron, which gave prices a lift. The availability of ferrous scrap in Mumbai has also started to decline. The index for Sponge iron fell by Rs300/mt to Rs24,200/mt amid trading activity.
In the budget announced on Monday, the Indian government has proposed to reduce customs duty on imports of semi-flat and long products of non-alloy, alloy, and stainless steel to 7.5pc. These policies were introduced to pressurize finished steel manufacturers to reduce domestic prices and kickstart stalled construction projects believe traders.