India’s domestic ferrous scrap market opened under pressure on Monday.
In Mumbai, the Davis Index for HMS 1&2 (80:20) settled unchanged from the prior Friday at Rs23,500/mt ($319.86/mt) delivered mills while the index for sponge iron fell by Rs200/mt to Rs19,700/mt delivered mills.
With India clocking close to 90,000 new COVID-19 cases each day the need for oxygen cylinders is growing. Steelmakers were thus urged by the Indian government to aid hospitals. As a result, most mills have scaled-down operations with an impact on demand for steel raw material including sponge iron and ferrous scrap.
Though prices for ingot fell by Rs100/mt ex-works in Mandi Gobindgarh, it did not drag down ferrous scrap on Monday. The index for HMS 1&2 (80:20) rose by Rs200/mt from the prior Friday to Rs22,500/mt del mill while the index for sponge iron decreased by Rs50/mt to Rs22,450/mt del mill. Late in the day, however, the ferrous scrap market had started to weaken.