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

Imported ferrous scrap offers to India trended up amid strong global cues but kept buyers away despite strong domestic fundamentals. Uncertainty around the shipment of materials ahead of winter break in most supplier countries kept trades on hold.  


In Turkey, strong demand for rebar and billet and orders in hand supported ferrous scrap bulk trades. The Davis Index for US-origin HMS 1&2 (80:20) rose to $360.83/mt cfr Turkey, rising $1.13/mt from the prior day. Buyers were interested to secure materials before major yards shut for holidays.


The Davis Index for containerized shredded on Thursday settled at $380.63/mt cfr Nhava Sheva, up by $1.75/mt from Wednesday, very few offers are active amid tight supply. Most traders and suppliers having stocks and containers both in hand indicated that trades below $385/mt cfr Nhava Sheva are hardly possible. Some remained cautious citing prices are beyond viable levels. 


This year a few yards could shut for New Year Holidays a week earlier amid high COVID-19 infections and lowered collection rates. 


“It has become very difficult to judge where this market is heading. Many factors indicate that the shortage of supplies will continue for the rest of December and the possibility of allowing ferrous scrap imports into China under ‘Recycled raw materials’ may push prices to the levels last seen in 2018,” said a steelmaker.  


China has the potential to import anywhere between 8-12mn mt per year of steel scrap amid a rise in EAF plants. Chinese mills’ inquiries for Japanese scrap lifted prices up sharply, said a trader, adding this might change the overall trade dynamics, particularly in the Asian market.


The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $363/mt cfr Nhava Sheva, up by $1/mt from Wednesday. Offers for containerized #1 HMS without the cast and galvanized iron from Dubai were at $365-370/mt cfr Nhava Sheva, with a few deals reported at $365/mt cfr Nhava Sheva.


A stronger domestic market in the US in December lifted suppliers’ sentiments. Most US-based yards kept offers very limited. The Davis Index for US-origin HMS 1&2 (80:20) settled at $361.94/mt cfr Nhava Sheva on Thursday, up by $0.51/mt from Wednesday. Prior indications for the grade in containers were at $360-365/mt cfr Nhava Sheva, depending on the quality. Price could rise further in actual deals, claimed traders.  


High imported scrap prices pushed up domestic billet prices in India. A few mills are targeting $510-520/mt fob India with Iranian billet offers up at $495-500/mt fob Iran levels for billet exports to the Southern region.  


With international iron ore prices charting seven-year high at $137-139/mt cfr China for Australian 62pc Fe content, Chinese HRC prices rose to $590-610/mt fob depending on the grade, gaining $40/mt in the last two weeks. Global indications are supportive of an uptrend in ferrous scrap prices. 



The Davis Index for containerized shredded, Thursday, settled at $380.72/mt cfr India subcontinent, up by $1.28/mt from Wednesday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $363.37/mt cfr India subcontinent, up by $1.02/mt from Wednesday.




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