Domestic ferrous scrap prices in India fell further on Friday. With the finished steel demand under pressure, most secondary steelmakers are adopting a cautious approach to stocking scrap inventories. It could take two months at the minimum for the government’s affordable housing scheme to spur demand.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) settled at Rs23,300/mt delivered mill ($310.98/mt), down by Rs300/mt ($4/mt). The index for sponge iron slipped by Rs750/mt to Rs20,500/mt del mill.
Historically, the wet season is known to create a shortage of iron ore, pushing up the prices for sponge iron. But soon after the wet season ends, prices can drop further, believe steelmakers.
In Mandi Gobindgarh, the index for HMS 1&2 (80:20) fell by Rs600/mt to Rs22,100/mt delivered mill, while the index for sponge iron settled flat at Rs22,000/mt del mill. Despite Mandi Gobindgarh semi-finished and finished steel market being under pressure, a shortage of sponge iron has kept its prices unchanged.
($1=Rs74.92)