The supply of domestic ferrous scrap remained tight in Mumbai due to the ongoing monsoons. Mills continued to procure ferrous scrap on a need basis on limited steel demand from domestic end-users.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs500/mt ($6.71/mt) to Rs35,500/mt del Mumbai, but the index for sponge iron declined by Rs200/mt to Rs31,300/mt del mills.
In the North, finished steel sales remained low which led to a decrease in ingot and scrap prices. The daily Davis Index for HMS 1&2 (80:20) declined by Rs400/mt to Rs36,100/mt del Mandi mills and the index for sponge iron rose by Rs700/mt to Rs34,900/mt del mills.
Prices of primary steel products could remain firm, supported by changes in China’s tax policy, believe market participants. Sponge iron sellers, however, could be forced to lower offers with secondary mills staying away from the market on elevated prices. Global iron ore prices too have started to come under pressure.
Primary steel market players could increase flat steel prices by Rs1,000-1,500/mt in the month of August, state Davis Index sources.
Markets in Alang stayed shut as transporters strike continued. Shipbreaking scrap prices thus remained unchanged.