Domestic ferrous scrap prices in North India remained under pressure on weak demand from ingot makers. Scrap availability in Mandi has also improved, weighing down prices.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs1,100/mt ($15/mt) to Rs36,900/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs400/mt to Rs34,000/mt del mills. Mills have already stocked up ferrous scrap inventories and could stay away from purchases for the near term. Also, finished steel sales are under pressure due to limited demand in downstream sectors.
In Mumbai, however, availability of ferrous scrap remains tight. But limited demand for scrap on sluggish semi-finished and finished steel sales in the city due to monsoon rains kept prices from increasing.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs34,500/mt del Mumbai mills and the index for sponge iron declined by Rs100/mt to Rs31,300/mt del mills.
Imported scrap prices also came under pressure on Wednesday amid weak domestic fundamentals and the daily Davis Index for HMS 1&2 (80:20) of US-origin declined by $2.5/mt to $497.5/mt cfr Nhava Sheva.