Domestic ferrous scrap prices lost steam on Friday and declined in Mandi Gobindgarh. In Mumbai, prices remained flat.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs500/mt ($6.74/mt ) to Rs35,900/mt ($484.15/mt) del Mandi Gobindgarh mill, while the index for sponge iron was down by Rs300/mt delivered mills. A decline in ingot prices because of low demand from re-rolling mills dragged down scrap prices.
In Mumbai, the daily index for HMS 1&2 (80:20) and sponge iron settled unchanged at Rs36,000/mt and Rs31,600/mt delivered mill, respectively. The ongoing monsoon has dampened long steel demand, especially rebar, as construction activities remain impacted. A ripple effect has pressured demand for ferrous scrap. Sellers of ferrous scrap, however, were unwilling to lower asking prices as the collection rate has also declined due to heavy rainfall in the past few days. Supply is tight in most markets.
The Alang shipbreaking market remained shut for yet another day amid a strike by transporters’ association. Shipbreaking scrap prices were unchanged on Friday, but the market is likely to resume trades on Saturday as the standoff between mills and transportation companies has been resolved.