Ferrous scrap prices in the western India declined on Tuesday amid sluggish demand from the end-users. Mills preferred to procure raw material only if requirement was urgent. The daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt ($6.89/mt) to Rs28,500/mt del Mumbai mills. The index for Sponge iron rose by Rs50/mt to Rs26,700/mt del Mumbai mills.
In Southern India, the bi-weekly Davis Index for HMS 1&2 (80:20) declined by Rs625/mt to Rs29,375/mt del Chennai mill amid slack demand for finished steel. The index for Sponge iron settled flat at Rs26,850/mt del mill.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) fell by Rs200/mt to Rs32,550/mt. The index for Sponge iron rose by Rs600/mt to Rs28,600/mt del mill. Sponge manufacturers are not ready to reduce offers and prefered catering to other regions’ demand instead.
In Jaipur, the bi-weekly index for HMS 1&2 (80:20) rose by Rs300/mt to Rs31,300/mt del mill; while the index for Sponge iron rose by Rs700/mt to Rs30,000/mt del mill.
In Hyderabad, the bi-weekly index for HMS 1&2 (80:20) rose by Rs1,000/mt to Rs29,000/mt del mill; while the index for Sponge iron settled unchanged at Rs26,600/mt del mill.
In Ludhiana, the indexes for busheling rose by Rs900/mt to Rs34,400/mt del mill, End cuttings rose by Rs950/mt to Rs34,200/mt del mill; while that for Sponge iron was up by Rs700/mt to Rs30,400/mt del mill.
Market participants are waiting to get a clear price direction, hence traders are also holding back till demand for finished steel picks-up.