Domestic ferrous scrap prices in India were flat to down as the number of COVID-19 cases continued to rise further weakening finished steel demand. In a bid to control the spread of the virus, the Indian government is promoting work-from-home policy, which is impacting labour-dependent sectors such as construction and manufacturing.
The daily Davis Index for HMS 1&2 (80:20) in Mandi Gobindgarh settled flat at Rs19,914/mt ($267.80/mt) del consumer and the index for sponge iron was unchanged at Rs19,875/mt del consumer. No transactions were heard in the market. Bids for ingots were at Rs29,300/mt and offers at Rs29,400/mt. The daily index for ingot in Mandi Gobindgarh settled flat at Rs29,350/mt ex-works. Traders in Mandi expect ingot prices to reach Rs27,000/mt ex-works by April.
The daily index for HMS1&2 (80:20) declined by Rs263/mt and settled at Rs22,450/mt del Mumbai mill. The index for sponge iron fell by Rs50/mt to Rs18,850/mt del Mumbai mill. Situation in Mumbai was no different as negative sentiment continued to impact trades. Sellers reduced their offers for HMS 1&2 (80:20) by Rs200/mt to Rs22,500/mt from Tuesday but failed to find bids as buyers stayed away from booking scrap.
Market participants expect thin trading to persist till the COVID-19 outbreak is under control.