Trades for domestic ferrous scrap were low in the Indian city of Mumbai on Wednesday. The daily Davis Index for HMS 1 &2 (80:20) thus, settled unchanged at Rs20,100/mt ($267.83/mt) del Mumbai mill and the index for sponge iron settled at Rs16,000/mt ($213.19/mt) del mill, also unchanged. The Maharashtra government’s lockdown is set to end on July 31, if not extended further. Movement in the state, therefore, remains partially restricted. Trading is thus likely to remain hit for some time.
Overall market sentiment in India remains weak with both, domestic and export demand for steel tepid. In keeping with the slow finished steel market, production in the northern part of the country is still below the usual levels. Many other induction furnaces also have a lower capacity utilisation rate.
In the Mandi Gobindgarh market, heavy rainfall affected transportation of goods. Transactions also were low and the daily Davis Index for HMS 1&2 (80:20) settled at Rs19,700/mt del Mandi mill and the index for sponge iron dipped to Rs18,700/mt del mill, a decline of Rs100/mt.
Downstream steel demand in India is unlikely to recover until the next two-three months. The ongoing monsoon season and rising tally of COVID-19 cases have stalled infrastructure and construction work, which is a major consumer of steel.
($1= Rs75.05)