Domestic ferrous scrap prices remained unchanged in Mumbai amid tight supply but low demand. With the arrival of rainy season in India, market demand will enter the traditional off-season.
The daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs34,200/mt ($462.84/mt) del Mumbai mills and the index for sponge iron declined by Rs100/mt to Rs31,100/mt del mills.
Scrap suppliers in the North reduced their offers for ferrous scrap to attract bids as mills already have huge inventories of finished steel while local demand is low.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs36,000/mt del Mandi Gobindgarh and the index for Sponge iron settled flat at Rs34,000/mt del mills.
Market participants are expecting ferrous scrap price to decline further amid low domestic demand. Imported scrap prices also came under pressure on weak global cues.