Indian domestic ferrous scrap prices were pressured by slow demand for finished steel. Trades were few in the market.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs150/mt($2.09/mt) to Rs23,450/mt($327.3/mt) del Mumbai mills. Traders refrained from bookings as they have been facing a cash crunch for over a month. The daily index for sponge iron declined by Rs100/mt to Rs19600/mt del Mumbai mills.
The bi-weekly index for End cuttings declined by Rs550/mt to Rs25,000/mt del Nagpur and the index for sponge iron fell by Rs225/mt to Rs19850/mt del Nagpur from Tuesday.
Supply of scrap in Jalna, Maharashtra has been scarce since last week. This gave HMS 1&2 (80:20) prices a lift and its bi-weekly index rose by Rs450/mt to Rs23,500/mt del Jalna. The bi-weekly index for sponge iron rose by Rs75 to Rs20250/mt del Jalna.
In the North, the daily Davis Index for HMS 1&2 (80:20) declined by Rs350/mt to Rs22300/mt delivered Mandi Gobindgarh. The index for sponge iron in Mandi Gobindgarh fell by Rs200/mt to Rs22300/mt delivered mills.
In southern India, the bi-weekly index for HMS 1&2 (80:20) rose by Rs225/mt to Rs21,975/mt del Chennai with trades heard at Rs22,000/mt. The index for sponge iron rose by Rs300/mt to Rs20,000/mt delivered Chennai.
Barring a few markets, Indian traders are staying away from scrap bookings as demand for finished steel remained weak coupled with higher imported ferrous scrap prices. Prices are likely to remain under pressure until major infrastructure projects start rolling.