Domestic ferrous scrap came under pressure on Wednesday amid tight supply and sluggish demand due to lockdowns in various parts of the country.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) rose by Rs300/mt ($4.005/mt) to Rs34,350/mt ($458.65/mt) del mill amid supply crunch. Demand for finished steel remains sluggish as new restrictions have been imposed in the state of Punjab till month-end, which has affected market sentiments. The index for sponge iron settled flat at Rs31,500/mt del Mandi Gobindgarh mill. Sponge manufacturers adopted a wait-and-watch strategy due to uncertainty around price directions. Limited deals were reported.
In Mumbai, domestic ferrous scrap settled flat on Wednesday. Suppliers kept their offer unchanged and trade activity was low amid stringent lockdown measures in Maharashtra. The daily Davis Indexes or HMS 1&2 (80:20) and sponge iron settled unchanged at Rs31,000/mt and Rs30,000/mt del Mumbai mills, respectively.
Traders expect markets to remain under pressure till the supply of oxygen cylinders — at present diverted from industrial use to medical purposes amid rising COVID-19 cases — is restored, allowing mills to function normally.
($1=Rs74.8)