Indian domestic ferrous scrap remained flat amid low trades following the extension of the COVID-19 lockdown in many regions. The government has eased most the restrictions but mills await the return of migrant labour to ramp up the production process.
In Mandi Gobindgarh, the Davis Index for HMS 1&2 (80:20) on Monday rose by Rs50/mt($0.66/mt) to Rs21,050/mt($278.641/mt) del mills, and the index for sponge iron rose by Rs50/mt to Rs20,100/mt del mills from Friday.
Traders refrained from buying In Mumbai, where the lockdown has been extended in many areas until June 30. Offers were heard at Rs21,000-21,100/mt on Monday. The index for HMS 1&2 (80:20) settled flat at Rs20,950/mt del Mumbai mills. As the availability of scrap is scarce in the domestic market, the Davis Index for sponge Monday iron rose by Rs100/mt to Rs17,900/mt del mills from Friday.
Market participants are expecting ferrous scrap prices to rise in the near term as steel mills opt to ramp up production ahead of the monsoon season. Most mills are operating at reducing capacity amid the COVID-19 pandemic.