Demand for domestic and imported ferrous scrap in the Indian market remains low. Maharashtra, a major state which houses the financial capital of the country, Mumbai, is the worst hit with COVID-19 outbreak.
The daily Davis Index for HMS 1&2 (80:20) settled at Rs20,100/mt ($269.22/mt) del Mumbai mill, down by Rs100/mt ($1.34/mt) and the index for sponge iron settled unchanged at Rs19,400/mt del mill. Trades for both were at the index price.
The bearish ferrous scrap market in India also impacted seaborne trades. US-origin containerised shredded sold at $270-275/mt cfr Nhava Sheva on Friday, down from $277/mt cfr on Thursday. In other South Asian markets, mainly Pakistan and Bangladesh, offers rose on Friday.
Finished steel demand in India is still tepid with the tally of COVID-19 cases going up in major cities. In the northern part of the country, production is yet to return to usual levels, while in South, a major metropolitan city, Chennai remains under a state-declared lockdown. Jalna, a iron and steel making hub in Maharashtra, is also set to go under a stringent 10-day lockdown from July 5 amid rising virus cases.
In Mandi Gobindgarh, the index for HMS 1&2 (80:20) settled at Rs19,800/mt del mill, down by Rs100/mt and the index for sponge iron settled unchanged at Rs19,400/mt del mill.