Domestic ferrous scrap prices declined on Wednesday as mills followed a wait-and-watch approach to scrap procuring. Sales of finished steel are low and most mills are focusing more on clearing the available tonnages.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs1,300/mt ($17.66/mt) to Rs34,000/mt del Mumbai mills and the index for sponge iron rose by Rs300/mt to Rs30,600/mt del mills.
Markets in the North followed a similar trend as ingot sales fell, the daily Davis Index for HMS 1&2(80:20) declined by Rs300/mt to Rs34,500/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs500/mt to Rs33,000/mt del mills.
Trades were low on Wednesday as there is a panic in the market amid GST authorities raid in Mandi Gobindgarh over fake bill issues.
Market participants are expecting ferrous scrap prices to remain under pressure till the demand for finished steel picks up.