Ferrous scrap prices in India remained flat on Thursday from Tuesday amid tight supply; while demand remained low from steelmakers.
The daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs33,800/mt ($455.81/mt) del Mumbai mills and the index for sponge iron declined by Rs200/mt to Rs30,600/mt del mills.
Mills in the North procured material only on a need basis amid low finished steel sales. The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt to Rs35,700/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs200/mt to Rs33,800/mt del mills.
Mills in Jalna have already cut production to 60pc of their capacit amid low demand. They have also indicated that should the presnt market situation continue, capacity utilization could be slashed further on July 1. The bi-weekly index for HMS 1&2 (80:20) rose by Rs50/mt to Rs34,050/mt del Jalna mills and the index for sponge iron settled unchanged at Rs32,700/mt del mills.
Ferrous scrap prices in Goa were flat amid tight supply and low demand. The index for HMS 1&2 (80:20) settled unchanged at Rs32,500/mt del Goa mills and the index for sponge iron was at Rs30,000/mt del mills, also unchanged.
Amid a lack of orders with mills, suppliers reduced their offers to boost ferrous scrap sales.The bi-weekly index for HMS 1&2 (80:20) declined by Rs200/mt from Tuesday to Rs35,500/mt del Chennai mills and the index for sponge iron declined by Rs800/mt to Rs29,700/mt del mills.
Induction furnaces in Raipur rued of huge losses amid rise in input cost and low finished steel sales. Like in Jalna, mills in the city also cut production by 50pc or may shut down units for a few days. The index for HMS 1&2 (80:20) settled flat at Rs35,250/mt del Raipur mills and the index for sponge iron remained unchanged at Rs30,350/mt del mills.
The bi-weekly index for HMS 1&2 (80:20) settled flat at Rs36,000/mt del Durgapur mills amid tight supply. Finished steel inventories are piling up which has led to lower procurement of scrap.
($1=Rs74.1)