Indian domestic ferrous scrap prices fell on Wednesday ending three days of uptrend. Domestic prices mirrored the rise in global ferrous scrap prices despite weak demand. The decline in prices triggered buying activity on Wednesday. Bookings increased as traders are also fulfilling their monthly supply contracts signed with mills.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs279/mt($3.90/mt) to Rs21,800/mt del Mandi Gobindgarh and the index for sponge iron rose by Rs200/mt to Rs22,200/mt del Mandi Gobindgarh. Sponge iron prices increased by Rs400-500/mt driven by increase in iron ore prices, however, sponge iron manufacturers are clearing stocks at a discounted rate, as 20th of every month is the last day to file local tax returns (Goods and Services Tax).
The daily Davis Index for HMS 1&2 (80:20) settled at Rs23,150/mt del Mumbai mills, up by Rs50/mt. Markets in Mumbai remained quiet with limited trades on occasion of a regional holiday of Shiv Jayanti. The index for sponge iron rose by Rs100/mt to Rs20,100/mt del Mumbai mill.
Ferrous scrap prices are likely to remain under pressure as traders expect demand for finished steel to stay subdued in absence of major infrastructure projects in the pipeline.
($1 = Rs71.51)