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

Most sellers were disappointed by Indian bids for imported HMS, which were $40-50/mt below their expectations. Heavy rains in many parts of the country, depreciating rupee, and COVID-19-related uncertainty dampened business sentiment, discouraging scrap buyers.  


Market participants believe the only factor which could revive demand before August is a recovery in steel export prices. On Thursday, a couple of bulk billet exports deals from primary mills as well as EAF makers boosted buyers appetite for ferrous scrap. Billet export offers rose $10-15/mt from the prior week to $620-630/mt fob India.  


Offers for HMS from UAE surged ahead of business closure for Eid holidays. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled unchanged at $480/mt cfr Nhava Sheva amid a lack of demand in the Indian market.


Indian mills inquired for imported shredded as they expect prices to trend down in the coming days following $12-15/mt dip in Turkish bulk prices. But most sellers in the containers market are unwilling to lower their asking rates amid tight scrap supply as well as a shortage of containers. The daily Davis Index for containerized shredded on Thursday, dropped by $2.5/mt to $537.5/mt cfr Nhava Sheva. Offers were above $540-545/mt cfr Nhava Sheva despite bids of around $530-535/mt cfr Nhava Sheva.


In a silent market, the Davis Index for US-origin HMS 1&2 (80:20) declined $1.5/mt to $490/mt cfr Nhava Sheva.  


In the Alang shipbreaking market, melting scrap offers on Thursday dropped just Rs100/mt to Rs33,700/mt ex-yards. In Mumbai, rebar prices were unchanged from a day ago, while a few offered rebar at Rs47,900/mt ex-works Wada. In Mandi, ingot prices extended their drop amid slow demand.


A rise in bulk billet prices boosted sentiments on Thursday. China imported billets at $700-707/mt cfr from various destinations including India, Southeast Asia and Russia. Domestic billet prices in China were at CNY5,140/mt ($796/mt) ex-Tangshan inclusive of VAT on Thursday, which is up CNY20/mt from Wednesday. 


International iron ore Fe 62pc rose marginally to above $218/mt cfr North China. The Chinese government plans to release coal reserves to ease the short supply and price of coal. 


Indian EAF makers sold around 20,000mt billet at $620/mt fob. Mills targeted above $630/mt fob on Thursday amid improved demand.  


The daily Davis Index for containerized shredded, Thursday, settled at $542.69/mt cfr Indian subcontinent, down by $2.38/mt from a day prior; while that for containerized US-origin HMS 1&2 (80:20) settled at $502.75/mt cfr Indian subcontinent, down by $0.77/mt from Wednesday.  




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