The daily Davis Index for HMS 1&2 (80:20) declined by Rs600/mt ($8.20/mt) to Rs29,600/mt ($404.94/mt) del Mandi-Gobindgarh amid limited buying as some parts of North India experienced heavy rain and hailstorm, while some regions reeled under the cold weather. Liquidity crunch due to delays in GST refunds also affected buying.
The index for Sponge iron dropped by Rs600/mt to Rs29,400/mt del mill with no deals reported at the index price.
Traders are expecting price correction in raw material across India. Few stockists are ready to sell their inventory at a rate lower than the current prices which is affecting the current finished steel prices in the market, a trader told Davis Index.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) fell by Rs250/mt to Rs29,750/mt del mill amid weak demand for finished steel. The index for Sponge iron settled flat at Rs28,250/mt with moderate demand.