For a third successive week, ferrous scrap prices opened bullish only to slow by the weekend. Buying has slowed in Mumbai, while mills in Mandi Gobindgarh reduced their bids expecting prices to fall.
The daily index for HMS 1&2 (80:20) fell by Rs100/mt ($1.33/mt) to Rs23,100/mt ($308.36/mt) del Mandi Gobindgarh mill amid thin trades. On the other hand, the index for sponge iron dips by Rs300/mt to Rs22,000/mt del mill on expectation of easing iron ore supplies.
The ferrous market took a breather on Friday as most buyers went into a wait-and-watch mode. Prices in Turkey almost flattened this week as mills stayed away from trades. If the silence continues, global scrap prices are likely to come under pressure. Steelmakers in Mandi believe a correction in prices could follow in the coming days.
Prices for HMS 1&2 (80:20) in the Mumbai market, however, remained flat and the daily index for the scrap grade settled at Rs24,000/mt del mill. The index for sponge iron too settled unchanged at Rs21,500/mt del mill. Most sellers are yet to lower offers despite falling trades.
Market participants believe sponge iron prices could lose steam in the coming days as iron ore supply has started to ease.