Finished steel makers in Mumbai curtailed production amid low demand from end users. As a result, scrap suppliers reduced their offers to induce sales.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs1,200/mt ($16.15/mt) to Rs31,800/mt del Mumbai mills from Friday, while the index for sponge iron settled flat at Rs29,100/mt del mills.
An increase in demand for scrap from ingot makers amid an uptick in prices and tight availability of scrap lifted prices in Mandi Gobindgarh.
The daily Davis Index for HMS 1&2(80:20) rose by Rs500/mt to Rs34,400/mt del Mandi Gobindgarh and the index for sponge iron declined by Rs300/mt to Rs32,500/mt del mills.
But overall, market participants expect ferrous scrap prices to remain under pressure as a major HRC and rebar manufacturers have lowered prices by Rs1,200-2,000/mt for July shipments. Monsoon lull and fears over a resurgence of a third COVID-19 wave added to the bearish sentiment in India.