Indian domestic ferrous scrap prices were flat on Wednesday as markets in India continued to stay shut amid COVID-19 outbreak.
The daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs20,150/mt ($264.35/mt) del Mandi Gobindgarh. The daily index for sponge iron remained flat at Rs20,000/mt del Mandi Gobindgarh. The Punjab government has extended its curfew till April 30th, postponing the reopening dates for mills. Buyers stayed away from bookings. Mills faced issued like unavailability of labour and lack of finished steel demand.
In Mumbai, most mills remained shut. The daily index for HMS 1&2 (80:20) settled flat at Rs22,450/mt del mills and the index for sponge iron remained unchanged at Rs17,900/mt del mills.
Despite relief measures from the government like concession electricity tariff or electric supply continuity for defaulters, manufacturers are unwilling to commence production. Market participants believe the lockdown could be extended by another 15 days.
Domestic scrap collection was hampered and a few importers resorted to overseas trade. A trade for Brazil-origin HMS 1&2 (80:20) was heard at $230/mt cfr Chennai.
($1 = Rs76.22)