Domestic ferrous scrap prices in Mandi Gobindgarh and Mumbai markets were flat to marginally down on Wednesday. Most mills believe prices are unlikely to fall drastically in the coming days but still refrained from booking material since finished steel demand remains under pressure.
In Mandi Gobindgarh, the daily Davis Index for HMS 1$2 (80:20) fell by Rs100/mt ($1.37/mt) to Rs22,500/mt ($307.96/mt) del mill but the index for sponge iron increased by Rs600/mt to Rs22,600/mt del mill. Scrap prices declined due to a fall in steel prices in the Mandi market. However, the persisting shortage of sponge iron has kept its prices firm. Once the monsoons subside, iron ore supplies will resume and prices are likely to fall thereby affecting sponge iron prices.
The index for HMS 1$2 (80:20) and sponge iron settled unchanged at Rs23,600/mt del Mumbai mill and Rs20,300/mt delivered mill, respectively. Trades in the Mumbai market were thin due to heavy rainfall. Demand remains good amid expectations of strong market fundamentals in the coming days.
($1=Rs73.06)