Domestic ferrous scrap prices declined on Friday as mills stayed away from scrap purchases. Finished steel sales remained low due to the ongoing monsoon hence scrap suppliers reduced their offers.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs1,000/mt ($13.44/mt) to Rs35,000/mt del Mumbai mills and the index for sponge iron declined by Rs100/mt to Rs31,600/mt del mills.
Steel makers in North bought scrap on a need basis as demand remained low, the daily Davis index for HMS 1&2 (80:20) declined by Rs200/mt to Rs36,200/mt del Mandi Gobindgarh and the index for sponge iron settled flat at Rs36,000/mt del mills.
Market participants believe ferrous scrap prices could remain under pressure till export picks up.