Domestic ferrous scrap prices remained flat in Mumbai and declined in Mandi Gobindgarh as overall trades were low since demand for finished steel did not pick-up.
The daily Davis Index for HMS 1&2 (80:20) settled at Rs23,500/mt ($319.7/mt) del Mumbai mills and the index for sponge iron declined by Rs200/mt to Rs20,000/mt del Mumbai mills on Monday.
There was a rise in malicious practices among GST officials in Mandi Gobindgarh who were supporting few traders in making fake bills for transportation recently. Raids and arrests made by the Excise department to curb this has hampered the flow of trade.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs22,000/mt del Mandi Gobindgarh and the index for sponge iron was flat at Rs22,600/mt del Mandi mills.
Traders are following ‘wait and watch’ strategy till they get a clear price direction. However some are still optimistic of scrap prices to improve in the near term, as demand from auto sector has picked-up.
Mills are currently focusing on exports as demand from the local market is still low, as per the market participant.