Indian domestic ferrous prices declined in south India as demand for finished steel weakened. Steel producers claimed downstream industries are currently not able to execute payment schedules due to a liquidity crunch. Mills have, therefore, refrained from booking raw material.
The bi-weekly index for HMS 1&2 (80:20) declined by Rs14,75/mt ($20.67/mt) to Rs21,500/mt del Chennai and the index for sponge iron fell by Rs100/mt to Rs19,800/mt del Chennai
In the North, the daily Davis Index for HMS 1&2 (80:20) declined by Rs250/mt to Rs21400/mt del Mandi Gobindgarh as trading thinned. The index for sponge iron remained unchanged at Rs22,000/mt del Mandi Gobindgarh.
In other domestic markets, prices of ferrous scrap rose in line with Turkish bulk scrap import prices which settled at $272/mt cfr for HMS 1&2 (80:20) Thursday, up by $8/mt from last week as global demand for ferrous scrap picked up.
The daily Davis Index for HMS 1&2 (80:20) in Mumbai rose by Rs200/mt to Rs22,700/mt del mills with trades heard at the index price. The daily index for sponge iron rose by Rs100/mt to Rs20,300/mt.
The bi-weekly index for HMS 1&2 (80:20) rose by Rs100/mt to Rs22,600/mt del Jalna and the index for sponge iron settled at Rs75/mt up by Rs75/mt del Jalna
Traders are expecting global ferrous scrap prices to rise further on bullish demand. They, however, are facing liquidity crunch and stayed away from bookings at these increased prices. Demand is likely to fall further if banks do not infuse liquidity in the markets.
($1= Rs71.35)