Domestic ferrous scrap prices are under pressure as mills continue to operate at lower utilization levels. Demand from the end users remains subdued due to the ongoing COVID-19-related lockdown which is extended till June 15 in Maharashtra.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt ($4.13/mt) to Rs33,500/mt del Mumbai mills and the index for sponge iron rose by Rs200/mt to Rs29,400/mt del mills.
Markets in the North followed a similar trend as demand from the mills stayed low. The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt to Rs35400/mt del Mandi Gobindgarh and the index for sponge iron settled flat at Rs32,000/mt del mills.
Mills are limiting purchases to immediate melt requirements amid restrictions. Finished steel consumers have turned silent. Mills are also refraining from booking imported scrap, lowering sea-borne offers on Monday.
Some traders are willing to wait before procuring ferrous scrap due to lack of clear price direction and while few others are expecting prices to improve ahead of monsoon.