Secondary metal producers crumble under lockdown, shipping cos add to woes

Scrap imported at lower prices stuck at ports, finished goods lying at factories with no transport available; shipping firms make hay by charging huge sums for storage at ports

Secondary metal producers which cumulatively contribute to nearly half of India's ferrous and non-ferrous metal consumption are facing a double-whammy due to the spread of coronavirus (Covid -19) in both, India and overseas.

Since its outbreak in Wuhan city of China in December 2019, metal prices have declined by a massive 25-30 per cent. Since secondary metal producers had booked their raw material (metallic scrap) from overseas suppliers based on the prevailing price about three months ago, the subsequent decline in metal prices has made import of raw materials costlier. Additionally, factories are shutting due to non-availability of raw materials and