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

Indian importers were upbeat amid strengthening domestic and international steel prices. Despite rising COVID-19 cases, most primary steelmakers have announced price hikes for both flat and long steel products by Rs3,000-4,000/mt ($48-54/mt) from a month prior. If the current market dynamics persist, a further price hike is likely in the coming days and boost ferrous scrap imports in India. 


An alloy maker was heard to have booked containerized busheling at $485/mt cfr Vizag from a Southeast Asian supplier. After the trade, prices reached a one-month high. The index for UK/EU-origin busheling was at $480/mt cfr Nhava Sheva on Friday, which then rose by $5/mt to $485/mt cfr Nhava Sheva on Monday.

Demand for shredded remains limited. Offers for the grade were in the range of $455-460/mt cfr Nhava Sheva, also hitting a one-month high. Mills in India found these prices unworkable. Amid a rise in asking prices, the Davis Index for containerized shredded was up by $5/mt to $455/mt cfr Nhava Sheva from Friday. 


The daily Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $425/cfr Nhava Sheva, up by $5/mt. From last Friday, the index rose by $25/mt. Dubai-origin HMS #1 was offered at $435-440/mt cfr Nhava Sheva, up by $5-10/mt from Friday. All three subcontinental markets competed to secure material from the region where supply is known to tighten during the Ramadan festival. 

The daily index for US-origin HMS 1&2 (80:20) settled at $426.25/t cfr Nhava Sheva, up by $6.25/mt. Offers for HMS 1&2 (80:20) from the UK and Australia were at $420-430/mt cfr Nhava Sheva. 


On Monday, melting scrap offers in Alang rose by over Rs200/mt at Rs32,700/mt ex-yards. Amid the fear over the resurgence of COVID-19, workers refused to work full time. In Mumbai, rebar prices were unchanged at Rs48,100/mt ex-works. Ferrous scrap demand slowed as participants await clarity over the repercussions of the renewed social distancing restrictions, especially in the key state of Maharashtra.  


In China and Taiwan, the steel market was silent on Monday due to the Qingming holidays. Spot imported iron ore 62pc ferrous content prices were above $165.5/mt cfr North China on Friday with a possibility of further rise in the coming days. 

Domestic rebar prices in the retail market reached a new record high of CNY5,000/mt. Billet prices on Saturday were at CNY4,960/mt ex- Tangshan amid production cuts. The Chinese government has pledged to lower crude steel production by 22mn mt in 2021. 



The daily Davis Index for containerized shredded Monday settled at $446.76/mt cfr Indian subcontinent, unchanged from Friday. The index jumped by $24.89/mt from last Friday. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $420.07/mt cfr Indian subcontinent, up by $0.02/mt from Friday. 


Weekly containerized freight rates maintained by Davis Index showed a rise of $10-15/mt to $55.41/mt, $76.19/mt, and $85.53/mt from New York to India, Pakistan, and Bangladesh, respectively.


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