Indian domestic ferrous scrap prices declined on Thursday amid low demand for finished steel. The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt ($1.36/mt) to Rs23,500/mt del Mumbai. The index for Sponge iron fell by Rs100/mt to Rs20,200/mt del Mumbai.

 

Mills in the North have reduced buying as they have already stocked up scrap inventories. The daily Davis Index or HMS 1&2 (80:20) settled flat to Rs22,500/mt del Mandi Gobindgarh and the index for Sponge iron remained unchanged at Rs22,600/mt del Mandi mills.

 

The index for HMS 1&2 (80:20) declined by Rs500/mt to Rs24,000/mt del Durgapur while the index for Sponge iron settled flat at Rs20,500/mt del Durgapur mills.

 

Scrap markets in the South reported low trades and prices were flat on Thursday. The index for HMS 1&2(80:20) settled at Rs22,750/mt, the index for sponge iron settled at Rs20300/mt del Chennai mills.

 

Heavy rains in the western and southern regions of India have slowed transportation of goods. The rising number of COVID-19 cases have also turned mill owners cautious. The index for HMS 1&2 (80:20) declined by Rs400/mt to Rs24,500/mt del Ahmedabad and the index for Sponge iron fell by Rs100/mt to Rs21,800/mt del Ahmedabad.

 

Availability of scrap in the domestic market is scarce and demand from end-use sectors remain slow. Market participants are expecting the prices to improve in the near term and more focus will be on importing ferrous scrap due to a shortage of scrap in the local markets. Major mills are expected to further increase finished steel prices by Rs700-1,200/mt, said traders.

 

($1=Rs73.52)

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