Indian domestic ferrous scrap prices on Tuesday were flat to down. Low finished steel demand and lack of oxygen cylinders with mills has hampered production. Ferrous scrap and sponge iron prices are likely fall further in the coming days if the situation persists.
The daily Davis Indexes for HMS 1&2 (80:20) fell by Rs400/mt ($5.44/mt) to Rs22,100/mt ($300.78/mt) del Mandi Gobindgarh mill and settled unchanged at Rs23,500/mt del Mumbai mill. The index for sponge iron declined by Rs250/mt to Rs22,200/mt delivered Mandi mill but remained flat at Rs19,700/mt delivered Mumbai mill. Sponge iron sellers have lowered their asking price amid low demand.
In Raipur, the bi-weekly index for HMS 1&2 (80:20) settled unchanged from the Thursday prior at Rs24,950/mt del mill but the index for sponge iron fell by Rs100/mt to Rs19,400/mt del mill. Ten districts in Chhattisgarh, including Raipur have been declared as containment areas due to a surge in the number of COVID-19 cases. The resulting stringent restrictions till Sep 28 at the minimum are likely to hit markets. A ripple effect is also likely in some other Indian markets including Mumbai, believe traders.
In Chennai, trades were low and the indexes for sponge iron and HMS 1&2 (80:20) remained unchanged at Rs24,000/mt and Rs20,500/mt del mill, respectively.