Ferrous scrap prices in the Indian domestic markets have started to come under pressure as demand for steel from end users has consistently failed to pick up this month. A decline in China’s steel prices has also affected sentiment in the export market.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt ($6.83/mt) to Rs36,000/mt ($492.41/mt) del Mumbai mills and the index for sponge iron rose by Rs25/mt to Rs31,200/mt del mills.
A majority of mills in Goa remained shut due to an oxygen cylinder shortage. But sellers were unwilling to lower offers citing tight supply of ferrous scrap in the market. The bi-weekly Davis Index for HMS 1&2 (80:20) and sponge iron settled flat from Tuesday at Rs32,000/mt and Rs31,200/mt del Goa mills respectively.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt to Rs36,800/mt del Mandi Gobindgarh, and the index for sponge iron declined by Rs300/mt to Rs32,500/mt amid low finished steel sales.
In other markets, the bi-weekly Davis Index for HMS 1&2 (80:20) fell by Rs1,150/mt to Rs34,450/mt del Jaipur mill, while the index for sponge iron was down by Rs550/mt to Rs33,450/mt del mill. In Ludhiana, the bi-weekly Davis Index for busheling settled at Rs39,000/mt, down by Rs1,300/mt delivered mill, while the index for sponge iron settled unchanged at Rs33,100/mt del mill.