Domestic ferrous scrap prices declined on Friday. Mid-week, prices had gained as sellers tried to raise their offers. But as anticipated by most mills, the market was unable to absorb the rise as finished steel demand is still under pressure.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs750/mt ($10.28/mt) to Rs26,000/mt ($356.49/mt) del Mumbai mill, while the index for Sponge iron fell by Rs150/mt to Rs24,500/mt del mill on Friday.
In Mandi, the index for HMS 1&2 (80:20) fell by Rs700/mt to Rs26,900/mt delivered mill and the index for Sponge iron settled unchanged at Rs24,900/mt del mill. Sponge iron producers were unwilling to lower their asking prices on Friday. Mills were not keen on trades at present prices and thus largely stayed away from the market. Sponge iron prices could fall by Rs1,000-1,500/mt in the coming week as sentiment remains bearish.