The upward price movement of domestic ferrous scrap early in the week started to taper from Thursday. On Friday, the Mumbai market fell while the Mandi Gobindgarh market only gained back Thursday’s Rs100/mt decline.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs150/mt ($2/mt) to Rs21,900/mt ($292.68/mt) del Mumbai mill, while the index for sponge iron settled unchanged at Rs18,850/mt del mill. In Mandi Gobindgarh, the index for HMS 1&2 (80:20) settled at Rs20,900/mt del mill, up by Rs100/mt and the index for sponge iron fell by Rs100/mt to Rs19,700/mt del mill.
Prices for scrap and sponge have been bullish for the last two weeks at the minimum. But mills believe the rise was not supported by an equivalent increase in finished steel prices. Steelmakers anticipate a correction scrap prices soon.
On the demand front, India’s Steel Ministry and some prominent steel producers have stated that the steel industry is on a path of recovery. Secondary still mills, however, state for demand to reach pre-COVID-19 levels, it would take another two quarters.