Indian domestic ferrous scrap prices fell Friday as trades thinned amid subdued demand. Steelmakers felt the heat of input cost rise over the week. On Thursday, scrap prices rose by Rs600/mt whereas ingot prices increased by Rs300/mt these upticks reduced producer margins. Steelmakers were on a budget and managed to buy scrap at a lower price on Friday pushing the index down by Rs300/mt, however, ingots prices remained unchanged, offsetting their gains.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) fell by Rs 300/mt ($3.94/mt) to Rs20,500/mt del mills, while the index for sponge iron rose by Rs150/mt to Rs17,400/mt del mills.
In Mumbai, constructions work is yet to resume and steel demand remained muted. Manufacturers await fiscal and infra push from the government to revive demand in the market and help stay afloat.
The daily index for HMS 1&2 (80:20) settled flat at Rs21,670/mt del Mumbai mills and the index for sponge iron remained unchanged at Rs17,600/mt del Mumbai mills.
To provide further relief to Micro, Small and Medium Enterprises (MSMEs) India’s Reserve bank on Friday announced that the three-month moratorium on loan instalments has been further extended by another three months from June 1 to August 31. This will help enterprises to retain cash in hand for working capital purposes.
($1= Rs75.95)