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.