Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian domestic ferrous scrap prices increased on Tuesday amid thinned trades and shortage of scrap. Most scrap markets across in India have reopened as the government eased COVID-19 lockdown.

 

The daily Davis Index for HMS 1&2 (80:20) rose by Rs 50/mt ($0.66/mt) to Rs21,000/mt ($279.22/mt) del Mandi Gobindgarh. The daily index for sponge iron increased by Rs300/mt to Rs20,400/mt del Mandi Gobindgarh.

 

In Hyderabad, low demand and liquidity crunch held back trading activity. The index for HMS 1&2 (80:20) dropped by Rs150/mt to Rs21,450/mt del Hyderabad and the index for sponge iron dropped by Rs200/mt to Rs16,950/mt del Hyderabad amid limited trades.

 

Few trades were reported in Durgapur. The index for HMS 1&2 (80:20) rose by Rs50/mt to Rs22.500/mt del Durgapur and the index for sponge iron increased by Rs25/mt to Rs17,500/mt del Durgapur as trades were heard at index price.

 

Markets in Mumbai resumed trading amid low demand. The daily index for HMS 1&2 (80:20) increased by Rs50/mt to Rs21,000/mt del mills and the index for sponge iron declined by Rs50/mt to Rs17,850/mt del mills.

 

In Jalna scrap prices were upbeat. The bi-weekly index for HMS 1&2 (80:20) increased by Rs250/mt to Rs20,700/mt del Jalna and the index for sponge iron dropped by Rs225/mt to Rs18,650/mt del Jalna.

 

Steel mills in Raipur faced scrap shortage amid healthy demand for finished steel. Steelmakers are ramping up production ahead of monsoon. The index for HMS 1&2 (80:20) rose by Rs700/mt to Rs 23,450/mt, del Raipur, while the index for sponge iron increased by Rs775/mt to Rs16,274/mt del Raipur.

 

To restore economic activity, the government of India has eased the lockdown in many regions. A step-by-step lifting of restrictions is planned in most states. Market participants expect demand and prices to pick up as mills increase production post-lockdown.

 

($1= Rs75.20)​

 

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