Indian domestic ferrous scrap prices declined on Friday amid weak demand for finished steel.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) dropped by Rs 100/mt ($1.31/mt) to Rs21,000/mt ($276.92/mt) del mills. The daily index for sponge iron declined by Rs125/mt to Rs19,950/mt delivered mills. With COVID-19 pandemic still refusing to come under control, economic activity remains subdued in some parts of the country. A shortage of labourers has stalled construction and infrastructure projects with a ripple effect on finished steel demand.
In Mumbai, thin trades were reported. The daily index for HMS 1&2 (80:20) remained unchanged at Rs21,050/mt delivered mills and the index for sponge iron settled at Rs16,900/mt delivered mills, also flat.
Manufacturers at present are using scrap inventories available with them but are likely to be in the market soon. This could support ferrous scrap prices in the near term.
($1= Rs 75.83)