Indian domestic ferrous markets were quiet as most steel mills were either shut or operating a lowest levels amid the 21-day COVID-19 lockdown. The daily Davis Index for HMS 1&2 (80:20) remained unchanged at Rs20,150/mt ($265.57/mt) del Mandi Gobindgarh. The daily index for sponge iron remained flat to Rs20,000/mt del Mandi Gobindgarh.
Steel industry is included in essential services in India. The Steel Ministry has allowed mills to function abiding to strict guidelines set for the prevention of spread of COVID-19. However, due to weak demand and scarcity of manpower steel mills have either temporarily idled processes and have shut their operations until the virus situation normalises.
In Maharashtra, the state government has announced a power tariff cut of 10-12pc for industrial users. Although it is a positive gesture, secondary mills based in the state said that the cost-saving from this tariff cut will be insignificant. In Mumbai, most mills have shut production due to lockdown. The daily Davis Index for HMS 1&2 (80:20) in Mumbai was flat at Rs22,450/mt del mills and the index for sponge iron remained unchanged at Rs17,900/mt del mills.
($1 = Rs75.84)