The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt ($2.72/mt) to Rs27,600/mt ($376.58/mt) del Mandi Gobindgarh mill amid low finished steel demand. Despite a decline in scrap prices by Rs1,700/mt in a week buyers in Mandi were bearish.
In the finished steel market, after a week-long downtrend, mills could raise prices in the coming days to check if the market can absorb the price rise.
Sponge iron manufacturers lowered their offers by Rs800-1000/mt to Rs26,600-26,900/mt from Friday to stimulate sales, and its index declined by Rs850/mt to Rs26,650/mt del mill. Most producers believe weak finished steel demand could drag Sponge iron prices further down.
In Mumbai, the Davis Index for HMS 1&2 (80:20) rose by Rs1,000/mt from Friday to Rs28,750/mt delivered mill. With finished steel demand and prices under pressure, mills were away from the scrap market for the past few days. With depleted inventories, many steelmakers returned to the domestic scrap market on Saturday to restock material, giving prices a lift. Late on Monday, however, activity slowed in the market.
The index for Sponge iron declined by Rs200/mt to Rs26,650/mt del Mumbai mill. Most mills stayed away from Sponge iron purchases since its prices are still unviable.