Indian domestic ferrous scrap prices were mixed on Tuesday as scarcity of scrap and weak demand thinned trades in most markets. The daily Davis Index for HMS 1&2 (80:20) increased by Rs 500/mt ($6.60/mt) to Rs21,000/mt ($277.56/mt) del Mandi Gobindgarh. The daily index for sponge iron remained unchanged at Rs17,400/mt del Mandi Gobindgarh.
Scrap prices also rose in Jaipur, Durgapur and Chennai amid shortage of scrap. Scrap collection and separation processes remain suspended in most locations due to spread of the COVID-19 pandemic and extended Ramzan festivities.
Steel mills in Chennai resumed production with limited labour. Offers prices for scrap were high amid short supply. The bi-weekly index for HMS 1&2 (80:20) increased by Rs600/mt to Rs20,450/mt del Chennai and the index for sponge iron remained unchanged at Rs17,150/mt del Chennai.
Shortage of casual labourers at steel mills and weak demand kept production at bear minimal levels impacting the demand for scrap in many markets. In Jalna, trading activity resumed with traders clearing inventories at discounted rate. The bi-weekly index for HMS 1&2 (80:20) dropped Rs550/mt to Rs21,400/mt del Jalna and the index for sponge iron fell by Rs707/mt to Rs18,950/mt del Jalna.
In Mumbai trades were thin amid rising cases of COVID-19 infection. The daily index for HMS 1&2 (80:20) was flat at Rs21,670/mt del mills and the index for sponge iron remained unchanged at Rs17,600/mt del mills.
Mills resumed production in West Bengal. The Index for HMS 1&2 (80:20) rose by Rs1,800/mt to Rs21,200/mt del Durgapur and the index for sponge iron rose by Rs250/mt to Rs16,950/mt del Durgapur.
Few trades were reported in Rajasthan, the index for HMS 1&2 (80:20) rose by Rs1,550/mt to Rs21,500/mt del Jaipur and the index for sponge iron fell by Rs1,250/mt to Rs19,000/mt del Jaipur. Lockdown and liquidity crunch have kept trades low, but traders are upbeat that prices will increase once the lockdown ends.