Indian domestic ferrous scrap and sponge iron prices dropped on Thursday amid weak demand. The bi-weekly index for HMS 1&2 (80:20) Thursday dropped by Rs1,000/mt to Rs 21,000/mt ($275.96) del Ludhiana and the index for sponge iron settled flat at Rs18,050/mt. Trades thinned and steelmakers preferred scrap over sponge iron.
In Mandi Gobindgarh, the daily Davis Index for HMS 1&2 (80:20) settled flat at Rs20,100/mt del mills. The daily index for sponge iron declined by Rs250/mt to Rs19,150/mt del mills.
Amid rising cases of COVID-19 in Chennai, Tamil Nadu government has announced a lockdown from June 19 to June 30 in Chennai and other districts. The bi-weekly index for HMS 1&2 (80:20) remained unchanged at Rs21,000/mt del Chennai mills and the index for sponge iron remained unchanged at Rs16,300/mt del mills.
In Raipur, the Index for HMS 1&2 (80:20) dropped by Rs300/mt to Rs22,150/mt del mills and the index for sponge iron declined by Rs200/mt to Rs15,000/mt del mills.
In Mumbai, the daily index for HMS 1&2 (80:20) remained unchanged at Rs20,000/mt del mills and the index for sponge iron dropped by Rs100/mt to Rs16,000/mt del mills.
In Indore, the index for HMS 1&2 (80:20) dropped by Rs400/mt to Rs 21,300/mt del mills and the index for sponge iron declined by Rs350/mt Rs17,950/mt del mills.
In Durgapur index for HMS 1&2 (80:20) remained unchanged at Rs22,500/mt del mills and the index for sponge iron dropped by Rs500/mt to Rs15,000/mt del mills.
Traders stayed away from the market and awaited clarity on price direction.
($1= Rs76.13)