Indian domestic ferrous scrap prices declined on Friday amid sluggish demand for finished steel from end-users. The daily Davis Index for HMS 1&2 (80:20) declined by Rs700/mt ($9.51/mt) to Rs23,500/mt del Mumbai mills. The index for sponge iron declined by Rs150/mt to Rs20,200/mt del Mumbai mills. Few transactions for scrap and sponge iron were heard at the index prices.
For the past few days, mills have been buying raw material only to meet their immediate requirements. Traders, however, are expecting demand to rise after the withdrawal of monsoons, driven by increased construction activities.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs22,300/mt del Mandi Gobindgarh with trades at the index price. The daily index for sponge iron fell by Rs300/mt to Rs22,600/mt del Mandi Gobindgarh.
The availability of scrap in the domestic market is scarce and mills are likely to book imported HMS 1&2 (80:20) currently offered at $308/mt cfr India.