Domestic ferrous scrap prices remained flat to down on Thursday amid low demand and a limited supply of scrap in some regions. Sponge prices tumbled as manufacturers reduced offers to attract bids. Overall market sentiments remained bearish with participants expecting a further decline in prices in the coming days.
The daily Davis Index for HMS 1&2 (80:20) remained flat at Rs35,000/mt ($471.52/mt) del Mumbai mills and the index for sponge iron declined by Rs100/mt to Rs30,600/mt del mills as scrap supplies tightened and demand slowed.
In Mandi Gobindgarh, the demand for ingot remained low, thus mills bought scrap on a need basis. The daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt to Rs35,100/mt del mills amid limited supply and the index for sponge iron declined by Rs600/mt to Rs34,800/mt del mills.
Similarly, the bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs500/mt to Rs35,000/mt del mills in Ludhiana as sales remained scarce and the index for sponge declined by Rs300/mt to Rs33,000/mt del mills.
The bi-weekly Davis Index for HMS 1&2 (80:20) also fell by Rs300/mt to Rs35,400/mt del mills in Jaipur amid few sales and the index for sponge tumbled by Rs1,200/mt to Rs34,500/mt del mills. Supply has eased in the region but buyers remained unwilling to make purchases.
In Durgapur, TMT sales remained low, hence, mills stayed away from scrap purchases. While yards lowered offers to encourage sales. The bi-weekly Davis Index for HMS 1&2 (80:20) declined by Rs700/mt to Rs35,00/mt and the index for sponge plunged by Rs1,000/mt to Rs20,000/mt del mills.
In Chennai, the bi-weekly Davis Index for HMS 1&2 (80:20) remained flat at Rs33,000/mt del mills and the index for sponge iron fell by Rs500/mt to Rs29,900/mt del mills.
($1=Rs74.20)