The daily Davis Index for both sponge iron and HMS 1&2 (80:20) rose by Rs150/mt ($1.98/mt) to Rs16,000/mt ($211.66) and Rs20,400/mt ($269.99/mt) del Mumbai mill, respectively. The uptick in prices was a result of panic buying by mills who fear stringent lockdown restrictions in the coming days. With the number of COVID-19 cases crossing 77,000 in the city, the police department has already evoked section 144 of the Code of Criminal Procedure, restricting the movement of people between 9pm to 5am.
In Mandi Gobindgarh, the daily index for HMS 1&2 (80:20) fell by Rs50/mt to Rs20,300/mt del mill. A fall in ingot prices by Rs450/mt to Rs30,500/mt ex-works Mandi on Wednesday amid a decline in finished steel prices is likely to weigh down scrap prices further on Thursday.
The index for sponge iron rose by Rs50/mt to Rs19,200/mt del mills. Sponge iron producers are gradually raising their offers to cover the increased input cost, mainly on the back of bullish coal prices.