Indian domestic ferrous scrap prices maintained a flat to down trend on Thursday amid low demand from mills. The daily Davis index for HMS 1&2 (80:20) settled at Rs23,300/mt ($315.3/mt) del Mumbai while the index for sponge iron declined by Rs200/mt to Rs19,800/mt del Mumbai mills.

 

Heavy rains have hampered the logistics and slowed down the overall demand from the end users. The bi-weekly indexes for HMS 1&2 (80:20) declined by Rs100/mt to Rs24,850/mt del Raipur and for sponge iron rose by Rs50/mt to Rs19,050/mt del Raipur mills.

 

In the south, the index for HMS 1&2(80:20) and sponge iron settled flat at Rs23,000/mt and Rs20,000/mt del Chennai mills.

Mills in the north are buying raw material in limited quantity as demand is low from the local market. The daily Davis Index for HMS 1&2(80:20) declined by Rs350/mt to Rs22500/mt del Mandi Gobindgarh. The index for sponge iron settled at Rs22,400/mt del Mandi Gobindgarh. 

 

Trades were thin on Thursday, as mills preferred to wait and watch till the demand for finished steel in India picks up. The index for HMS 1&2 (80:20) settled flat at Rs23,000/mt del Goa and the bi-weekly index for sponge iron declined by Rs150/mt to Rs19,850/mt delivered Goa.

 

Markets in Durgapur were also calm as trades were low. The index for HMS 1&2(80:20) settled flat at Rs25,000/mt del mills, the index for sponge iron declined by Rs500/mt to Rs19,000/mt del Durgapur.

 

Traders are expecting scrap prices to improve once monsoon subsides and demand from the infrastructure and construction sector picks up.

 

($1=Rs73.88)

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