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

Indian imported ferrous scrap prices remained largely flat on Tuesday. Trades were limited amid volatile domestic prices and uncertainty due to escalation of border dispute with China. Scrap prices are, however, expected to scale new highs as steelmakers reach pre-COVID-19 capacity utilization levels. Though rise in COVID-19 infection remains a major concern. 


In Turkey, the daily US-origin HMS 1&2 (80:20) settled at $300/mt cfr Turkey while there were reports of few more trades at higher levels. Most EAF makers in Turkey have increased offers for rebar and domestic scrap purchase prices by TRY60-70/mt ($7-9/mt) while trades were reported at higher prices. 


The daily Davis Index for containerized shredded on Tuesday was unchanged at $324/mt cfr Nhava Sheva, from Monday. UK-origin containerized shredded were offered at $325-330/mt cfr Nhava Sheva and Mundra. US-origin shredded scrap suppliers offered very limited volumes to India this week. Very few trades for shredded were reported at $319-323/mt cfr Nhava Sheva late last week.  


Many Indian ferrous scrap importers had avoided port and demurrage charges during COVID-19 and failed to clear shipments from ports. This is holding up traders and suppliers from taking additional risk as COVID-19 cases surge in India. Mills have turned inactive in the bulk markets and have shifted to containerised trades.  


Chinese importers hiked bids for billet this supported some billet exporters active in Southeast Asia and Chinese markets, while Vietnamese mills raised bids for Indian HRC this week. A few mills matched higher offers for imported scrap but preferred short delivery destinations like UAE and Australia for HMS scrap.  


In the domestic market, sentiments remained volatile on supply crunch. Sponge iron makers have requested the government to amend India’s mining policy to ease the severe shortage of iron ore and sponge iron in the country. Sponge iron makers association’s OSIMA is calling for regulation of pellet exports and resumption of mining at several mines.


The daily Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $306.67/mt cfr Nhava Sheva Tuesday, up by $1.54/mt from Monday. Deals for Dubai-origin HMS 1&2 (80:20) were at $305/mt cfr Nhava Sheva, stable from Friday. Suppliers refused to accept lower bids of $300/mt cfr Nhava Sheva. #1 HMS scrap from Dubai yard traded at $308-310/mt cfr Nhava Sheva.


The index for US-origin HMS 1&2 (80:20) Tuesday settled at $306/mt cfr Nhava Sheva, unchanged from Monday. Few buyers bid at $300-305/mt, however, lack of offers led to no deals. Most suppliers from the US preferred Turkey and other Southeast Asian markets to supply more materials.    



The Davis Index for containerized shredded, Tuesday, settled at $315.1/mt cfr India subcontinent, up by $0.6/mt from Monday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $298.8/mt cfr India subcontinental, up from $0.1/mt cfr India subcontinent from Monday.



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