The Davis Indexes for HMS 1&2 (80:20) and sponge iron settled unchanged at Rs20,100/mt ($269.34/mt) and Rs16,000/mt ($214.40/mt) del mill, respectively, from Friday. Trades were limited with businesses in the city struggling to return to normalcy amid the rising number of COVID-19 cases and the resulting movement restrictions imposed by the civic and the state governments.
Capacity utilisation in most Mumbai mills remains low as the ongoing monsoons have also dampened demand in steel downstream industries, mainly real estate and infrastructure sectors. Mills believe for the next two-three months scrap prices would remain range-bound. Only after the virus break comes under control and monsoons withdraw, demand is likely to revive.
In the Mandi Gobindgarh market, limited trades were reported over the weekend. Though the market is slated to work for five days in a week, bookings usually conclude telephonically to be loaded in the upcoming week, shared a trader. But with lowered production levels in most mills in North India, scrap prices were under pressure.
The index for HMS 1 &2 (80:20) settled at Rs19,700/mt del Mandi Gobindgarh mill, down by Rs100/mt and the index for sponge iron settled unchanged at Rs19,400/mt del mill. Buyers are booking scrap only to meet their minimal requirements to maintain a slow, yet steady pace of production.
($1=Rs74.63)