Domestic ferrous scrap prices declined in India amid limited buying from the steelmakers on Tuesday. Mills chose to extinguish stockpiled raw material inventories before booking more material. At present production rates, these inventories could get utilized in a week.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt($4.03/mt) to Rs34,700/mt del Mumbai mills, and the index for sponge iron fell by Rs200/mt to Rs31,300/mt delivered mills.
Markets in the North witnessed low demand for scrap from the ingot makers. Suppliers reduced offers to boost sales, and the daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt to Rs35200/mt del Mandi Gobindgarh. The index for sponge iron settled unchanged at Rs34,500/mt delivered mills.
Supply of scrap has eased in Jalna as mills, and the bi-weekly index for HMS 1&2 (80:20) declined by Rs500/mt to Rs34,500/mt del Jalna mills. The index for sponge iron settled flat at Rs33,400/mt delivered mills.
Chennai mills witnessed low demand for finished steel and refrained from stocking raw material inventories. The bi-weekly index for HMS 1&2 (80:20) declined by Rs33000/mt delivered mills. The index for sponge iron fell by Rs300/mt to Rs30,600/mt delivered mills.
Mills are trying to tap the export markets as domestic demand is yet to pick up. Demand for ferrous scrap could pick up next week, believe traders.
Supply of scrap remained tight in the eastern part of India due to heavy rains, the bi-weekly index for HMS 1&2 (80:20) rose by Rs200/mt to Rs35700/mt del Durgapur mills, while the index for sponge iron declined by Rs600/mt to Rs30600/mt delivered mills.
Shipbreaking scrap prices in Alang settled unchanged on Tuesday as the transporters’ strike continued.