Barring the uptick of Rs100/mt ($1.33/mt) in HMS 1&2 (80:20) on Thursday, prices for the scrap grade have been largely unchanged in Mumbai. On Friday, the daily Davis Index for HMS 1&2 (80:20) remained flat at Rs20,200/mt ($268.49/mt) del Mumbai mill.
Trading remains subdued as most mills have scheduled maintenance activities and are running at reduced capacity. An overall weakness in domestic finished steel demand is also suppressing ferrous scrap trades. The index for sponge iron settled flat at Rs16,000/mt del mill.
Despite low scrap inventories, many mills stayed away from both domestic and imported ferrous scrap markets. Amid uncertainty about recovery in finished steel demand, mills limited their scrap purchases only to meet their immediate requirements. Imported shredded scrap offers rose by $5-7/mt to $275-280/mt cfr Nhava Sheva as buyers in other South Asian markets, mainly Pakistan and Bangladesh accepted higher prices.
In Mandi, the daily index for HMS settled at Rs19,900/mt del mill, and the index for sponge iron settled at Rs18,800/mt del mill, both unchanged. Heavy rains in the North have hampered logistics in many regions, in addition to subdued demand. But prices have flattened this week rather than fallen as scrap is still available in limited quantities.