Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Domestic ferrous scrap prices in India remained unchanged on Monday as markets continued to remain shut. A few states like Maharashtra, Punjab, Odisha and Telangana among others have extended their lockdowns till April 30. Mills have not been able to resume operations due to a shortage of labour and halted demand in the real estate and infrastructure sectors.


The daily Davis Index for HMS 1&2 (80:20) del Mandi Gobindgarh mill remained unchanged at Rs20,150/mt ($264.11/mt). The daily index for sponge iron del Mandi Gobindgarh mill also remained unchanged at Rs20,000/mt.


The ministry of trade and industry has written to the ministry of home affairs to allow major mills to continue production with 20-25pc personnel working in a single shift to begin with. These mills have also committed to following the requisite social distancing norms. Also, a few micro, small and medium enterprises with export commitments have applied for exemptions to allow material movement and work with a minimal workforce. 


The home ministry has issued guidelines for inter-state and intra-state movement of all trucks, including the empty ones while on their way to/from picking up goods. 


 In Mumbai, the daily Davis Index for HMS 1&2 (80:20) and sponge iron settled unchanged at Rs22,450/mt and Rs17,900/mt del mill, respectively. 


Market update

With the lockdown extending in Odisha, a region housing most sponge iron manufacturers and suppliers of iron ore, the steel industry is likely to face supply disruption. The government circular asking local and state authorities to ease movement of goods and workforce on their way to work in units coming under the ‘essential’ list seems to be the only relief.


($1= Rs76.29)

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