Domestic ferrous scrap offers plunged, after a bullish week, as mills held back new booking on Friday. Finished steel sales are weak due to lockdowns in several regions while production has also gone down due to  shortage of oxygen cylinder.

 

The daily Davis Index for HMS 1&2 (80:20) declined by Rs1,000/mt ($13.64/mt) to Rs37,500/mt del Mandi Gobindgarh and the index for sponge iron rose by Rs200/mt to Rs33,600/mt del mills amid rise in input cost.

 

Mills in the West were also buying scrap on a need basis. There is a shortage of raw material and overall sales for finished steel have been low amid Ramadan holidays. The daily Davis Index for HMS 1&2 (80:20) settled flat to Rs37,000/mt del Mumbai mills and the index for sponge iron rose by Rs300/mt to Rs32,200/mt del mills.

 

International offers remained unchanged on Friday to $500/mt cfr India for HMS 1&2 (80:20) of US-origin. Mills in India are hoping that imported scrap prices would decline in the near term to book their shipments. Mills expect prices of finished steel to improve once the lockdowns and other restrictions are lifted. 

 

($1=Rs73.2)

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