The daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt ($6.83/mt) to Rs27,750/mt ($379.58/mt) del Mumbai amid limited activity. Demand for finished steel continues to remain weak amid oversupply of scrap and piled-up inventories, causing prices to drop.
Mills expect demand to improve in the coming week. The index for Sponge iron dropped by Rs1,750/mt to Rs26,850/mt del Mumbai mill. Sponge iron manufacturers hope that reduced offers could push demand upwards, else they might have to focus on other markets at current levels.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) fell marginally by Rs50/mt to Rs27,800/mt del mill amid thin trading activity. The index for Sponge iron declined by Rs400/mt to Rs27,500/mt del mill. A few bids from buyers were Rs200 lower than offers in order to conclude deals at a workable range, but manufacturers refused to accept those levels. Therefore, Sponge manufacturers are focusing on fulfilling previously booked orders, and stayed away from fresh deals.