Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Shipbreaking re-rolling scrap prices rose on Friday amid tight supply and firm demand from the local rolling mills. The daily Davis Index for 10Ani rose by Rs1,200/mt ($16.32/mt) to Rs41,000/mt ex-Alang and the index for 12Ani rose by Rs700/mt to Rs41,000/mt ex-Alang.


Yards in Alang continued to face shortage of tonnage as Pakistan and Bangladesh are paying higher for the vessels. Demolition activities remain affected due to shortage of oxygen cylinders for industrial use. 


Extension of lockdown in Gujarat and nearby states is hampering demand from the end-users, hence mills are buying on a need basis. The indexes for 6Ani and 8Ani declined by Rs100/mt each to Rs40,900/mt and Rs41,000/mt ex-Alang, respectively.


Demand for the ship plates is also limited as the auto sector is witnessing slowdown in manufacturing. The index for 1kg plates declined by Rs100/mt to Rs39,600/mt ex-Alang and the index for 2kg plates declined by Rs200/mt to Rs40,800/mt ex-Alang.


Mills continued to stay away from imported scrap amid high offers and long transit period, and opted for local scrap instead. But, market participants are optimistic that ferrous scrap prices will rise in near term amid low availability and soaring international scrap prices. 


The daily Davis Index for HMS attachments and Melting settled flat on Friday at Rs39,300/mt and Rs38,300/mt ex-Alang, respectively. 



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