Ferrous scrap prices in the domestic market declined on Friday as steelmakers kept a close watch on markets before stocking inventories.
Ferrous scrap suppliers reduced their offers to attract bids, the daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt ($6.78/mt) to Rs34,500/mt del Mumbai mills and the index for sponge iron settled flat at Rs30,600/mt del mills.
Markets in the North witnessed low ingot sales which led to a decline in local scrap demand. The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs34,800/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs400/mt to Rs34,400/mt del mills.
Market participants bought on a need basis and believed ferrous scrap prices could fluctuate in September due to festivities.