Domestic ferrous scrap prices declined on Tuesday. Scrap prices in Indore, Mandi Gobindgarh, Ludhiana, Ahmedabad, Jalna and Raipur declined on low demand and sales while it inched up in Mumbai amid a tight supply of scrap in the region.
The daily Davis Index for HMS 1&2 (80:20) increased by Rs300/mt to Rs35,300/mt ($480.67) del Mumbai mills and the index for sponge iron remained flat at Rs30,300/mt del mills amid limited scrap availability.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) plunged by Rs200/mt to Rs34,800/mt del mills and the index for sponge iron remained flat at Rs33,500/mt del Mandi mills amid low demand.
Demand for scrap remained scarce as festive season approaches and due to the fear of a potential third wave of the COVID-19 pandemic, hence the bi-weekly Davis Index for HMS 1&2 (80:20) plunged by Rs1,000/mt to Rs35,000/mt del Durgapur mills while the index for sponge iron also declined by Rs1,000/mt to Rs28,300/mt del mills.
The bi-weekly Davis Index for HMS 1&2 (80:20) declined by Rs400/mt to Rs34,300/mt del Jalna mills as demand remained scarce. The index for sponge iron also fell by Rs400/mt to Rs31,900/mt del mills.
In Ahmedabad, demand remained very low due to the ongoing monsoon season. Mills reduced rates to attract bids, yet sales remained scarce. The bi-weekly Davis Index for HMS 1&2 (80:20) declined by Rs1,000/mt to Rs35,500/mt del mills and the index for sponge iron also declined by Rs800/mt to Rs32,200/mt del mills.
The bi-weekly Davis Index in Ludhiana for HMS 1&2 (80:20) declined by Rs1,500/mt to Rs34,000/mt del mills amid few sales and very low demand and the index for sponge iron also declined by Rs1200/mt to Rs32,000/mt del mills due to the fall in iron ore prices.
The bi-weekly Davis Index in Indore for HMS 1&2 (80:20) fell by Rs200/mt to Rs35,200/mt del mills and the index for sponge iron also fell by Rs300/mt to Rs31,200/mt del mills.
($1=Rs73.44)