Domestic ferrous scrap prices declined on Tuesday with mills in a wait-and-watch mode. Demand from end-users remained subdued due to the ongoing lockdown restrictions imposed by the government.

 

The daily Davis Index for HMS 1&2 (80:20) declined by Rs800/mt($10.99/mt) to Rs34,500/mt del Mumbai mills and the index for sponge iron declined by Rs300/mt to Rs2,9400/mt del mills.

 

Steelmakers are still working at a lowered capacity due to continued supply tightness of oxygen. The bi-weekly index for HMS 1&2 (80:20) declined by Rs1,500/mt to Rs35,500/mt del Jalna mills.

 

Markets in the East were largely silent due to a cyclone warning. The cyclonic storm named Yaas could hit transportation activity as it is expected to bring a heavy downpour. Shortage of raw material continued in Durgapur but a lack of demand kept the bi-weekly index for HMS 1&2 (80:20) flat at Rs36,000/mt del Durgapur. The index for sponge iron declined by Rs800/mt to Rs28,200/mt del Durgapur mills.

 

In Hyderabad, the index for HMS 1&2 (80:20) settled at Rs32,950/mt del mill; down by Rs1,050/mt; while the index for sponge iron declined by Rs1,300/mt to Rs29,500/mt del mill.

 

In Raipur, the index for End cutting settled at Rs37,650/mt del mill; down by Rs1,750/mt; while the index for sponge iron declined by Rs1,175/mt to Rs29,025/mt del mill.

The daily Davis Index for HMS 1&2(80:20) declined by Rs400/mt to Rs35300/mt del Mandi Gobindgarh but the index for sponge iron rose by Rs350/mt to Rs32,950/mt del mills.

 

Mills in Goa stayed away from buying imported scrap, offers for which remain firm. In the domestic market, supply of scrap remains low and the bi-weekly Davis Index for HMS 1&2 (80:20) rose by Rs50/mt to Rs32,050/mt del Goa mills.

 

Sluggish finished steel sales due to the lockdown in the South has weighed down the the demand for raw material. The index for HMS 1&2 (80:20) declined by Rs300/mt to Rs34,400/mt del Chennai mills and the index for sponge iron declined by Rs1,700/mt to Rs29,600/mt del mills.

 

Market participants expect ferrous scrap prices to remain under pressure till the lock down restriction eases and global sentiment improves.

 

($1=Rs72.7)

Leave a Reply

Your email address will not be published.