Indian domestic ferrous scrap prices were under pressure in North India and settled unchanged in Mumbai amid low demand. Three days of downpour slowed down the movement of goods and also paused construction activities in Maharashtra.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt($2.72/mt) to Rs22,600/mt del Mandi Gobindgarh, and the daily Davis Index for Sponge iron settled flat at Rs22,100/mt del Mandi Gobindgarh mill. A few transactions for HMS and Sponge iron were reported at their respective index prices.
Mumbai mills have resorted to a ‘Just-in-time’ inventory system as they are waiting for end-user steel demand to pick up. The daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs23,800/mt del Mumbai mill, and the index for Sponge iron rose by Rs300/mt to Rs20,800/mt delivered mills.
Sponge manufacturers believe prices could decline in the coming days, weighed down by low demand due to heavy rains.
Scrap prices could also come under pressure till the Southwest monsoon withdraw.