Domestic ferrous scrap prices in India slipped on Friday as trading slowed. Mills have adopted a wait-and-watch approach before securing more raw material. Scrap suppliers reduced offers looking at sluggish rebar sales amid lack of demand from the end users under lockdown.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs1,600/mt ($21.9/mt) to Rs35,200/mt del Mandi Gobindgarh and the index for Sponge iron declined by Rs300/mt to Rs32,200/mt del mills.
Like in Mandi, the Mumbai market was also bearish as buyers hoped for ferrous scrap prices to decline further. Demand from finished steel consumers is likely to remain tepid till the stringent lockdown restrictions are eased.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs800/mt to Rs35,200/mt del Mumbai mills and the index for sponge iron declined by Rs500/mt to Rs30,700/mt del mills.
Market participants expect infrastructure projects to restart from mid-June and support demand for finished steel, at least until the monsoon season reaches its peak.