The daily Davis Index for HMS 1&2 (80:20) fell by Rs500/mt($7.01/mt) to Rs22,600/mt del Mumbai, due to a $10/mt decline in global ferrous scrap prices, and low demand from Indian steelmakers. The index for sponge iron also fell by Rs200/mt to Rs20,500/mt del Mumbai on weak global cues.
In North India, the daily index for HMS 1&2 (80:20) settled at Rs21,900/mt del Mandi Gobindgarh, and the index for sponge iron fell by Rs50/mt to Rs22650/mt del Mandi Gobindgarh.
Offers from traders were limited as they expect finished steel demand to increase in the near term because of new infrastructure projects to be announced in the Indian annual budget.
Domestic steelmakers await clarity from the Indian government on their demands to reduce custom duties on imports of metal scrap into India. Prices of ferrous scrap are likely to be under pressure till the government takes a final decision on the duties.