Domestic ferrous scrap prices declined in Mandi Gobindgarh, driven by slow ingot sales. Steelmakers continued to buy raw material only to meet their immediate melt requirements in a weak finished steel market. Most mills focussed on liquidating their steel inventories instead. The supply of scrap in Mandi Gobindgarh has also eased, pressuring prices.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs700/mt ($9.43/mt) to Rs35,000/mt del Mandi Gobindgarh, and the index for sponge iron remained unchanged at Rs33,800/mt delivered mills.
Tight availability but weak demand due to low finished steel sales kept prices for ferrous scrap flat in Mumbai. The daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs33,800/mt del Mumbai mills, and the index for sponge iron declined by Rs800/mt to Rs29,800/mt delivered mills.
Market participants believe prices could gain on bullish sentiment in the global market. Large-scale mills continued to bag export orders, while offers for HMS 1&2 (80:20) UAE-origin rose by $2/mt to $473/mt cfr Nhava Sheva from a day ago.