The supply of domestic ferrous scrap in India remains tight as heavy rains and waterlogging in many regions delayed the transportation and loading process. Mills are limiting scrap buying to immediate melt requirements and meeting daily production targets.
The daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt ($4.02/mt) to Rs34,000/mt del Mumbai mills and the index for sponge iron settled flat at Rs31,800/mt.
Scrap loading has slowed due to Eid holidays and heavy rains. Loading has declined by around 75pc in 3days, said sources to Davis.
Markets in the North saw a decline in demand, but a tight supply of ferrous scrap kept price firm. The daily Davis Index for HMS 1&2 (80:20) rose by Rs100/mt to Rs35,800/mt del Mandi Gobindgarh and the index for sponge iron rose by Rs1,300/mt to Rs34,500/mt del mills.
Market participants are on a wait-and-see mode and expect finished steel sales to improve post-monsoon. This could improve the demand for ferrous scrap in the near term.