Indian domestic ferrous scrap prices remained flat on Friday as markets were quite amid an extension of the COVID-19 lockdown in most parts of the country. Despite relaxation in lockdown for some industries and construction activities in non-hotspot areas outside city limits, market participants have little hope that steel production or downstream manufacturing will resume anytime soon.
The daily Davis Index for HMS 1&2 (80:20) Rs20,150/mt ($263.39/mt) del Mandi Gobindgarh. The daily index for sponge iron remained unchanged at Rs20,000/mt del Mandi Gobindgarh.
New guidelines allow industries located in special economic zones and industrial zones or enterprises which have employees living within the premises to resume manufacturing activities. In Ludhiana steel mills still remain shut despite the government allowing them to resume functioning with due care. Induction furnaces operators and sponge manufacturers have decided to wait until the demand situation improves.
Maharashtra has the highest number of COVID-19 cases in India, along with a high number of cases in Mumbai and Pune. Most mills in the state are shut. Pune houses a large number of automobile manufacturers as well as auto component companies. There is little hope that the industrial belt in the region will resume activities after April 20, despite relaxation due to weak demand.
In Mumbai, the daily index for HMS 1&2 (80:20) settled flat at Rs22,450/mt del mills and the index for sponge iron remained unchanged at Rs17,900/mt del mills.