Domestic ferrous scrap prices across India inched down on Wednesday on decline in demand for ferrous scrap.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs250/mt ($3.51/mt) to Rs22,550/mt ($316.6/mt) del Mumbai mills and the index for sponge iron remained unchanged at Rs20,200/mt on Wednesday. The fall in prices of ferrous scrap impacted the index for rebar which fell by Rs200/mt to Rs34,900/mt.
Demand for ferrous scrap remained tepid as manufacturers are considering reducing production to control oversupply of finished steel. Though there have been announcements for new infrastructural projects by the government, its impact on steel demand would be seen only in the long term.
The daily index for HMS 1&2 (80:20) settled at Rs21,900/mt ($307.4/mt), up by Rs25/mt del Mandi Gobindgarh. There were limited trades in the market. The daily index for sponge iron declined by Rs50/mt to Rs21,950/mt on Wednesday.
Across India, traders expect ferrous scrap prices to remain under downward pressure next week.
Other market updates
Shredded scrap traded in the range $280-285/mt cfr Nhava Sheva on Wednesday, a drop of $5/mt from Jan 31.