India’s domestic ferrous scrap prices were mixed on Thursday. Trades were thin as buyers faced a liquidity crunch. In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) dropped by Rs 400/mt ($5.27/mt) to Rs20,900/mt ($275.66/mt) del mills. The daily index for sponge iron remained unchanged at Rs17,550/mt del mills.
Scrap collection and separation has taken a hit due to COVID-19 pandemic. A persisting shortage of casual labours has also impacted production at mills.
Hyderabad market reopened this week and mills focussed on clearing their built-up inventory at discounted rates. The index for HMS 1&2 (80:20) dropped by Rs100/mt to Rs21,600/mt del mills and the index for sponge iron fell by Rs50/mt to Rs17,150/mt del mills.
In Chennai, scrap prices went up due to short supply. The bi-weekly index for HMS 1&2 (80:20) increased by Rs300/mt to Rs20,750/mt del mills and the index for sponge iron rose by Rs50/mt to Rs17,200/mt del Chennai.
West Bengal also resumed operations this week and the index for HMS 1&2 (80:20) settled at Rs22,450/mt del Durgapur, up by Rs1,250/mt from Tuesday. The bi-weekly index for sponge iron increased by Rs525/mt to Rs17,475/mt del Durgapur. Trades have started to trickle down with most finding prices high.
The Mumbai market continued to grapple for a foothold with new COVID-19 cases refusing to subside. The daily index for HMS 1&2 (80:20) settled flat at Rs21,670/mt del mills and the index for sponge iron remained unchanged at Rs17,600/mt del mills.
In Raipur and Goa, the bi-weekly index for HMS 1&2 (80:20) remained unchanged at Rs 22,750/mt and Rs22,500/mt del mills, respectively.