Ferrous scrap prices declined on Monday as mills refrained from booking raw material amid low demand from end-users.
Ingot makers in Mandi Gobindgarh were hit by low sales which made them adopt a just-in-time inventory strategy. The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt ($2.69/mt) to Rs34,800/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs500/mt to Rs33,300/mt delivered mills.
New lockdown restrictions have been imposed in Maharashtra due to the new delta variant of COVID-19. Also, demand from the local market was already weak due to the monsoon rains.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs33,500/mt del Mumbai mills, and the index for sponge iron fell by Rs200/mt to Rs29,600/mt delivered mills.
Market participants believe ferrous scrap prices could remain firm as supply is tight and international suppliers remain firm on their offers. The index for UAE origin HMS 1&2 (80:20) settled unchanged at $473/mt cfr Nhava Sheva.