Domestic sponge iron prices rose in Mandi fuelled by a shortage of ferrous scrap in the market. The daily Davis Index for HMS 1&2 (80:20) rose by Rs100/mt ($1.32/mt) to Rs21,000/mt del mills and the index for sponge iron rose by Rs2,500/mt to Rs20,050/mt del mills. Offers for sponge iron prices were at Rs20,000-20,100/mt ($264.7- $266/mt) as mills resorted to sponge iron as an alternative for steel production. 

 

In the North, freight charges have increased on low availability of trucking fleet along with shortage of casual workers.

 

Mills have slowly resumed in Mumbai at minimal capacity and are currently utilizing the available inventories with no new demand. 

The daily Davis Index for HMS 1&2 declined by Rs720/mt to Rs20,950/mt del mills, as offers in the local market were at Rs21,000-21,100/mt, however trades thinned. The daily index for sponge iron settled flat at Rs17,800/mt del mills.

 

The fourth phase of lockdown is about to end on May 31 and scrap traders await government directives before making fresh bookings.

 

($1= Rs75.5)

 

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