Indian domestic ferrous scrap prices were subdued on Friday as markets head towards partial or total lockdown announced by the government. The daily Davis Index for HMS 1&2 (80:20) fell by Rs400/mt ($5.3/mt) to Rs20,150/mt ($268.5/mt) del Mandi Gobindgarh.
All non-essential activities including construction, manufacturing were either shut or postponed for at least the next two weeks across many Indian cities. Most industries are shut or will operate at a nominal capacity till the end of March.
The daily Davis Index for HMS 1&2 (80:20) fell by Rs400/mt ($5.3/mt) to Rs20,150 ($268.5/mt) del Mandi Gobindgarh. The daily index for sponge iron rose by Rs262/mt to Rs20,000/mt del Mandi Gobindgarh as mills stocked up their raw material inventories to avoid shortages later in the month. A temporary spike in demand from traders and real estate companies, who were securing supplies ahead of an expected lockdown supported prices in Mandi.
In Mumbai, most mills are either shut or have cut production. There was little to no demand from the infrastructure sector. Workplaces in cities like Mumbai and Pune will remain close until March 31, as per the Maharashtra state government’s order. 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 fell by Rs900/mt to Rs17,900/mt del mills.
The Davis index for shredded on Friday settled at $280/mt cfr Nhava Sheva, down by $21/mt from a week ago as mills shied away from fresh purchases as they braced up for stricter lockdown measures to control the spread of COVID-19.