Prices of domestic ferrous scrap declined on Monday as trading thinned. The rise in the number of COVID-19 cases in India has started affecting logistics and manufacturing activities. Traders are facing cash crunch due to low finished steel demand.
In Mumbai, the daily Davis Index for HMS 1&2 (80:20) fell by Rs337/mt ($4.54/mt) to Rs22,713 ($305.94/mt) del mills and the index for sponge iron settled flat at Rs18,900/mt del mills.
The daily Davis Index for HMS 1&2 (80:20) dropped by Rs125/mt to Rs20,525/mt del Mandi Gobindgarh. The daily index for sponge iron dropped by Rs250/mt ($3.37/mt) to Rs20,000/mt ($269.39) del Mandi as markets stayed silent.
With the global spread of COVID-19 affecting the market sentiment, ferrous scrap prices are likely to stay flat or decrease further in the near term.