The week opened with HMS 1&2 (80:20) prices declining in both Mumbai and Mandi Gobindgarh markets. Weak demand for scrap amid the ongoing rainy season pressured prices.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) fell by Rs200/mt ($2.69/mt) to Rs23,100/mt del mill and the index for sponge iron fell by Rs350/mt to Rs20,200/mt del mill, few trades were heard for HMS 1&2 (80:20) at the index price.
Mill owners have delayed their purchases amid heavy rains and uncertainty of demand from end-user sectors. Many parts of Central India and coastal Maharashtra received heavy rains through the weekend stalling construction and industrial activities across the region.
In Mandi Gobindgarh, the daily Davis Index for sponge iron settled unchanged from Friday at Rs22,000/mt del mill and the index for HMS 1&2 (80:20) fell by Rs400/mt to Rs21,700/mt del mill inline with the ingot prices.
Traders are expecting prices to decline further this week as mills have already stocked up raw material inventories. They believe post-monsoon demand from the construction and auto sector could push the prices further.