Domestic ferrous scrap prices were flat in Mumbai and declined in Mandi Gobindgarh on Wednesday. Mills were seen buying on a need basis as demand from end-users is still low due to the stringent lockdown measures to tackle COVID-19 infections.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs32,000/mt ($425.8/mt) del Mumbai mills as buyers were silent a day after imposition of strict lockdown by the government of Maharashtra. Demand from the rebar consumers also declined in Mumbai and TMT prices fell by Rs100/mt to Rs47,800/mt ex-works. The daily Davis Index for Sponge iron declined by Rs200/mt to Rs29,200/mt as suppliers tried to reduce their offer to attract bids.
Demand from the rolling mills in the North declined amid shortage of oxygen cylinders as more than 80pc of it has been diverted to hospitals. Thus, mills staying away from procuring raw material in the current situation which is forcing suppliers to reduce their offers.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs1,050/mt to Rs34,100/mt del Mandi Gobindgarh and the index for Sponge iron rose by Rs150/mt to Rs31800/mt del Mandi Gobindgarh as mills are preferring Sponge over scrap.
Market participants are waiting for clarity in price direction before carrying out any trade.
Offers from the international markets are still firm but bids have reduced further by $4-5/mt as mills are preferring domestic scrap over imported.