Ferrous scrap prices were flat in Mumbai but rose in Mandi Gobindgarh on Wednesday. Mills, unsure of the price direction, bought ferrous scrap only for immediate melt requirements.
The daily Davis Index for HMS 1&2 (80:20) was flat at Rs36,000/mt ($485.25/mt) del Mumbai mills. Scrap supply was scarce, on the other hand, demand from local mills remains tepid. The index for sponge iron declined by Rs100/mt to Rs31,400/mt delivered mills.
Demand for finished steel remained low in Mandi. Ingot sales, however, improved. The daily Davis Index for HMS 1&2 (80:20) rose by Rs100/mt to Rs36,600/mt del Mandi Gobindgarh and the index for sponge iron settled flat at Rs35,500/mt delivered mills.
Indian mills focused on imported ferrous scrap as the price gap between local and imported HMS contracted. The supply of ferrous scrap could improve in the local market which could lead to a decline in prices.
Shipbreaking scrap prices remained unchanged due to the ongoing transporters’ strike. A meeting was scheduled on Wednesday between shipbreakers and rolling mills to find a resolution, and market activities could resume soon.