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

Most exporters raised ferrous scrap offer prices for Indian buyers by $3-5/mt on Tuesday since domestic demand has shown signs of recovery. Finished steel prices for October deliveries rose by a maximum of Rs2,000/mt ($27/mt), boosting market sentiment. Still, many buyers are waiting for clarity on global trends as they are unsure of the prices sustaining. 


Leading steelmakers raised HRC, CRC, and wire rod prices amid expectations of end-user demand picking up in the automotive and utensil manufacturing sectors in the coming days. After the raise, HRC prices are at Rs42,000-42,500/mt ex-works, CRC at Rs47,000-47,500/mt ex Durgapur, and wire rods and rebar prices at Rs42,500-43,000/mt ex-works and Rs39,000/mt ex-works, respectively, for October shipments. Still, high-grade scrap was unviable for many. 


The Davis Index for containerized shredded settled at $307/mt cfr Nhava Sheva, up by $3.25/mt from Monday. Most traders and supplier yards offered shredded at $308-310/mt cfr Nhava Sheva on Tuesday as prices rebounded after falling to a two-month low. Bids for shredded were below $305/mt cfr Nhava Sheva with buyers unwilling to meet current offer levels amid weak global cues. 

Ferrous scrap prices in Turkey are under pressure, and many buyers believe it could translate into falling offers in India in the near term. 


In Turkey, the daily Davis Index for US-origin HMS 1&2 (80:20) declined by $1.83/mt to $287.50/mt cfr on Monday as buyers targeted lower prices. Bids are below $285/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region, and $280/mt cfr for the grade from Europe.

But sellers are hoping that finished steel price rise in India could encourage buyers to book ferrous scrap aggressively. 


The Davis Index for HMS 1&2 (80:20) of UAE-origin, Tuesday, was at $284/mt cfr Nhava Sheva, up by $1/mt from Monday. Deals for Dubai-origin HMS 1&2 (80:20) were at $283-285/mt cfr Nhava Sheva with some bids even heard at $278-280/mt cfr Nhava Sheva. Offers for containerized #1 HMS from Dubai were at $295-300/mt cfr Nhava Sheva against bid levels of $285-290/mt cfr Nhava Sheva on Tuesday. 


In the bulk market, no trade for US-origin HMS 1&2 (80:20) materialized with buyers restraining their bids in the range of $295-300/mt cfr Kandla against offers of $310/mt cfr Kandla. Domestic scrap availability has improved with activities gradually returning to pre-COVID-19 levels. 


The index for US-origin HMS 1&2 (80:20) Tuesday settled at $286.07/mt cfr Nhava Sheva, up by $1.98/mt from Monday. Trades for the US and UK/EU-origin HMS 1&2 (80:20) were at $283-285/mt cfr Nhava Sheva. Most suppliers were unwilling to reduce offers amid indications of demand recovery in October. Offers for HMS1&2 (80:20) from Europe, South America, and West Africa were at $280-285/mt cfr Nhava Sheva against bids of $275/mt cfr Nhava Sheva. 


Uncertainty in global markets due to China slowing trading ahead of the Golden Week holidays and a second wave of COVID-19 in the UK and other European countries could dampen sentiment. Golden Week Holidays has slowed activity even in the Asian billet market. 



The Davis Index for containerized shredded, Tuesday, settled at $300.34/mt cfr India subcontinent, up by $2.44/mt from Monday. The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $279.72/mt cfr India subcontinental, up by $2.24/mt from the prior week. 




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