Indian ferrous scrap market Tuesday headed to a standstill as COVID-19 fear gripped the market.
No trades were reported as the demand for finished steel came to a halt in the market. Many cities across India have advised citizens to avoid crowded places and stay indoors to control the spread of the virus. These measures have spread negative sentiments in the market.
The index for HMS 1&2 (80:20) fell by Rs500/mt to Rs22,500/mt del Goa and by Rs500/mt to Rs22,500/mt del Indore.
In Gujarat, ferrous scrap prices and sponge iron prices increased in Ahmedabad. In the Kutch region, buyers were interested in buying a premium for imported scrap amid a shortage of domestic ferrous scrap. However, supplier struggled with unavailability of containers.
In the North, the daily Davis Index for HMS 1&2 fell by Rs611/mt to Rs19,914/mt del Mandi Gobindgarh. The daily index for sponge iron fell by Rs1,450/mt to Rs19,750/mt del Mandi Gobindgarh. In Ludhiana, the index for HMS 1&2 (80:20) fell by Rs1,200/mt to Rs20,300/mt while the index for sponge declined by Rs1,450/mt to Rs19,750/mt.
In southern India, the bi-weekly index for HMS 1&2 (80:20) fell by Rs550/mt to Rs21,000/mt del Chennai and the index for sponge iron dropped by Rs500/mt to Rs18,800/mt del Chennai.
The daily Davis Index for HMS 1&2 (80:20) settled flat at Rs22,713/mt del Mumbai mills and the index for sponge iron settled unchanged at Rs18,900/mt del Mumbai.