Domestic ferrous scrap prices fell on Monday as mills stayed away from booking ferrous scrap. Finished steel sales are yet to pick pace amid the monsoon lull. Mills lowered domestic steel prices by Rs1,000/mt following a slump in international iron ore prices.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt ($4/mt) to Rs34,700/mt del Mumbai mills and the index for sponge iron declined by Rs300/mt to Rs31,300/mt del mills.
Most steelmakers limited purchases to immediate melt requirements as steel demand remained low. The daily Davis index for HMS 1&2 (80:20) declined by Rs800/mt to Rs35,400/mt del Mandi Gobindgarh and the index for sponge iron fell by Rs600/mt at Rs35,400/mt del mills.
Subdued steel demand and lower iron ore prices could further pressure scrap prices until steel exports rebound, stated market participants.