Domestic ferrous scrap prices in Indian markets showed a marginal rise on Friday. After a decrease of around Rs700-800/mt ($9-19/mt) in prices, many mills were interested in restocking material. The resulting uptick in demand led to sellers raising their offers on Friday.
In Mandi Gobindgarh, the daily index settled at Rs33,900/mt ($453/mt) del mill, up by Rs325/mt, while the index for sponge iron settled unchanged at Rs32,800/mt del mill.
Overall, a bearish sentiment reigns the Indian steel market because of the ongoing monsoon season slowing construction activities and fears of the third wave of the COVID-19 pandemic on account of the mutation of the highly contagious delta strain into the delta plus variant.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) fell by Rs100/mt to Rs33,000/mt del mill and the index for sponge iron settled unchanged at Rs29,100/mt del mills. Mills in Maharashtra are mulling production cuts to avoid stockpiled inventories. Demand, some market participants believe, could recover only in September.