Indian domestic ferrous scrap prices were flat on Monday as markets remained inactive due to an extended COVID-19 lockdown.
Economic activity in the country stayed suspended although the central government eased restriction in some industrial clusters in non-affected regions. As per the new guidelines, industries in the green zone or less affected areas are allowed for resume operations. But restriction on movement of labourers from one zone to other or between districts and states is still prohibited leading to a shortage of manpower for most enterprises.
The daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs20,150/mt ($263.52/mt) del Mandi Gobindgarh. The daily index for sponge iron remained flat to Rs20,000/mt del Mandi Gobindgarh. Steel manufacturers in Punjab remained shut under amid lockdown and curfew orders.
Major cities Mumbai and Pune in Maharashtra have been designated COVID-19 hotspot and many areas are under strict quarantine with the implementation of curfew orders. Industries based in most regions of Maharashtra are less keen to resume production due to shortage of labour and weak demand from end-consumers. In Mumbai, the daily index for HMS 1&2 (80:20) settled flat at Rs22,450/mt del mills and the index for sponge iron remained unchanged Rs17,900/mt del mills.
Traders in Mumbai and Mandi avoided booking imported scrap as the value of Indian rupee depreciated to Rs76.63 against US$ 1 on April 20 from Rs76.50 on April 17.
($1 = Rs76.46)