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

Demand for imported ferrous scrap in India remained subdued with most major states either under partial lockdown or staring at complete lockdown in near-term — resulting in economic uncertainty. Strong global cues and high container freight charges kept offers towards the higher-end. Depreciation of India Rupee against the US Dollar discouraged importers though mills tried to seize export opportunities. 


Trades for India billets and HRC reported at further improved prices, keeping sentiments positive about raw materials’ prices. Offers for containerized shredded from the UK/EU remained in the range $460-465/mt cfr Nhava Sheva, stable from the prior week. 


The Davis Index for containerized shredded settled at $459/mt cfr Nhava Sheva, down by $3.5/mt from last Friday. Major steelmakers have ramped-up oxygen production for medical use, which is expected to help improve the situation in India. The index for US-origin HMS 1&2 (80:20) Monday settled at $433/mt cfr Nhava Sheva stable from Friday. The daily Davis Index for UAE-origin HMS 1&2 (80:20) was at $429/cfr Nhava Sheva on Monday, up by $1/mt. Deals for Dubai-origin HMS #1 were in the stable range of $435-440/mt cfr Nhava Sheva. 


Suppliers from the UK and Australia were bullish amid improved demand in Bangladesh and a few trades in India. Southern and Gujarat-based scrap consuming steel mills are expected to book considerable volumes amid limited inventories. On Monday, melting scrap offers in Alang opened lower by Rs300/mt to Rs36,600-36,700/mt ex-yards. Many yards have been forced to shut operations due to oxygen shortage, and recycling activities at Alang are gradually coming to a standstill. 


In Mumbai, rebar prices remained unchanged on Monday at Rs49,300/mt ex-works, with trades for domestic HMS 1&2 (80:20) flat-to-up at Rs31,000-31,300/mt del mills. Stricter movement curbs to contain the virus in Maharashtra has impacted inter-district transport and availability of laborers. Construction work has slowed, hurting rebar sales and scrap consumption. 


In China, spot iron ore prices recovered to $185/mt cfr North China for 62pc Fe scrap content. Stricter emissions restrictions were introduced in the Chinese steel hub of Handan city. Chinese mills, however, have resumed billet imports in the range of $670-675/mt cfr China from ASEAN suppliers, boosting sentiments further. 



The daily Davis Index for containerized shredded Monday settled at $462.4/mt cfr Indian subcontinent, up by $0.49/mt from Friday; while that for containerized US-origin HMS 1&2 (80:20) was at $439.98/mt cfr Indian subcontinent, up by $0.38/mt. Weekly normalised containerized freight rates maintained by Davis Index showed marginal drop to $52.79/mt, $50.97/mt, and $80.22/mt from New York port to India, Pakistan, and Bangladesh, respectively. ($1=Rs74.8)

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