Indian domestic ferrous scrap prices remained mixed on Wednesday. Demand for finished steel was subdued. Mills purchased scrap merely to fulfil their basic monthly production targets.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs421/mt ($5.87/mt) to Rs22,650/mt del Mandi Gobindgarh as the supply of scrap tightened in the local market. The index for sponge iron rose by Rs200/mt to Rs22,500/mt del Mandi Gobindgarh.
Mills also faced a cash crunch as end-users are yet to clear pending dues. The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt to Rs23600/mt del Mumbai mills as trades were thin. The daily index for sponge iron fell by Rs200/mt to Rs19700/mt del Mumbai.
Market participants are bearish on demand for ferrous scrap till the government announced infrastructure activities pick up and spur demand for finished steel.