Domestic ferrous scrap prices further declined in India on Wednesday amid low demand from the secondary mills.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt ($2.72/mt) to Rs23,300/mt del Mumbai mills, overall trades were low as mills refrained from buying raw materials. The index for sponge iron was flat at Rs19,700/mt del Mumbai mills.
Markets in the North also followed a similar trend as demand from mills remained subdued and trades were comparatively low. Mill owners were concerned with the increase in number of COVID-19 cases and shortage of oxygen which is slowing the production activity.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs100/mt to Rs22,000/mt del Mandi Gobindgarh, the index for ingot has also shown a dip of Rs250/mt to Rs32,400/mt del mills. The daily Davis Index for sponge iron declined by Rs100/mt to Rs22,100/mt del Mandi Gobindgarh.
Traders are expecting prices to remain under pressure till demand from the end-users goes up. Imported scrap price are also likely to decline amid weak demand in the country.