The uptrend of ferrous scrap prices in the domestic market halted on Friday. Ingot prices in Mandi Gobindgarh declined by Rs200/mt, weighing down scrap prices. Still, a shortage of material amid logistical issues due to the ongoing protests in Punjab cushioned prices from falling.
The daily Davis Indexes for HMS 1&2 (80:20) settled flat at Rs24,700/mt ($364/mt) del Mandi Gobindgarh mill and Rs26,000/mt ($350.51/mt) del Mumbai mill on Friday. After a rise in semi-finished steel, buyers started to refrain from trading. Mills, therefore, had to reduce offers to boost sales. The fall in semi-finished steel prices, especially in Mandi Gobindgarh, pressured scrap prices. In Mumbai, though there was an uptick in finished and semi-finished steel prices, mills were largely away from scrap trades.
Sponge iron prices, however, continued to rise amid a persisting shortage of iron ore and the resulting price rise. In Mandi Gobindgarh, the index for Sponge iron rose by Rs600/mt to Rs25,400/mt del mill, while in Mumbai, it rose only by Rs50/mt to Rs23,200/mt del mill.
($1=Rs74.17)