The daily Davis Index for HMS 1&2 (80:20) and Sponge iron settled flat at Rs 24,550/mt ($329.2/mt) del Mumbai mill and Rs22,100/mt ($296.3/mt) del Mumbai mill, respectively. Mill operators shared that trades remained low.
In Mandi Gobindagrh, the index for HMS 1&2 (80:20) dropped by Rs200/mt to Rs23,700/mt amid weak demand for finished steel. Market participants expect the demand to rise in the coming week.
The Indian currency depreciated to Rs74.62 against the US dollar which would make imports costlier in the near term and mills might prefer domestic scrap over imports.
The scarcity of Sponge iron due to iron ore shortage is likely to drive domestic scrap prices up. The index for Sponge fell by Rs100/mt to Rs24,100/mt due to minor price correction.