Supply crunch lifts prices of ferrous scrap in Mumbai on Monday despite few trades. After staying largely flat last week, the index for HMS 1&2 (80:20) rose by Rs400/mt ($5.32/mt) to Rs20,600/mt ($273.99/mt) del Mumbai mill on Monday, from Friday. The index for sponge iron rose by Rs200/mt to Rs16,200/mt del Mumbai mill.
Most steelmakers are purchasing scrap on need basis as they fear imposition of a stringent lockdown yet again. Pune, a major city close to Mumbai has gone into a complete lockdown for the second time, with only a few listed essential services allowed to operate.
In Mandi Gobindgarh also, prices increased supported by a shortage. The Davis Index for HMS 1&2 (80:20) increased by Rs200/mt from Friday to Rs20,100/mt del Mandi mill on Monday and the index for sponge iron was up by Rs600/mt to Rs19,400/mt del mill. Steelmakers in North India are looking to ramp up production. But a shortage of workforce is stalling the process.
To tide over the crisis units falling under Micro Small and Medium Enterprises category have sought support from the government to reduce their input cost. Ludhiana’s Chamber of Industrial and Commercial Undertakings has asked the government to do away with the anti-dumping duties on raw materials imports, including materials used for steel making.