Domestic ferrous scrap prices were under pressure amid weak fundamentals in the steel market. In Ludhiana, the bi-weekly Davis Index for busheling fell by Rs700/mt ($9.44/mt) to Rs39,400/mt del mil; the index for End cutting fell by Rs900/mt to Rs39,000/mt del mill. The index for sponge iron declined by Rs200/mt to Rs34,200/mt del mill.
In North India, availability of scrap has started to ease as the government has started to relax COVID-19-related restrictions. Demand, however, is still under pressure since many mills believe situation will normalize only by July. Until then, downstream industries could limit their purchases of steel.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs600/mt to Rs36,300/mt del Mandi Gobindgarh and the index for Sponge iron settled flat at Rs34,000/mt del mills.
In Mumbai, after staying flat for three consecutive days, the market witnessed a fall in raw material prices as sales of finished steel were low. The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs34,200/mt del Mumbai mills and the index for sponge iron declined by Rs100/mt to Rs31,200/mt del mills.
Mills in Jalna are slowly clearing their old stock, hence, demand for raw material is tepid. The bi-weekly index for HMS 1&2 (80:20) settled flat at Rs34,500/mt del Jalna mills amid tight supply.
In Indore, the bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs400/mt from Tuesday to Rs36,200/mt del mill and the index for sponge iron declined by Rs200/mt to Rs32,400/mt del mill.
In Jaipur, the bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs900/mt to Rs35,300/mt del mill and the index for sponge iron declined by Rs500/mt to Rs33,400/mt del mill.
Mills in the East are still waiting for a clear price direction, hence, buying was limited, and ferrous scrap suppliers reduced their offers. The bi-weekly index for HMS 1&2 (80:20) declined by Rs550/mt to Rs36,950/mt del Durgapur mills and the index for sponge iron declined by Rs400/mt to Rs30,000/mt del mills.