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

Imported ferrous scrap offers in India continued to trend up, but bids lagged by $15-20/mt keeping trades slow. Ferrous scrap demand is likely to improve next week after a brief pause earlier this week. A few mills are wary of COVID-19 resurgence in parts of the world impacting scrap generation again. 


The Davis Index for containerized shredded, Friday, settled at $482.5/mt cfr Nhava Sheva up by $2.12/mt from Thursday and by $17.5/mt from a week ago amid limited trades. Excluding alloy makers, all other buyers preferred HMS and stayed away from buying high grades, including shredded. Bids by Indian buyers were at $470-480/mt cfr India. The gap between HMS and shredded scrap has widened to over $35-40/mt on a shortage of high grades from the usual $15-20/mt levels. 


Pakistani mills are likely to accept containerised shredded offers of $500/mt cfr Port Qasim, resulting in firm offer prices for Indian buyers. Container shortage in Asia has also led to shipping lines raising freight rates, thus increasing costs for importers. Bulk cargo importers stayed away from the market despite limited stocks citing unviable prices.

Dubai sellers were unhappy with the bids in the range of $400-430/mt cfr India, depending on quality, resulting in only a few deals. The Davis Index for UAE-origin HMS 1&2 (80:20) Friday settled unchanged at $440/cfr Nhava Sheva. Some suppliers offered #1 HMS at $445-455/mt cfr Nhava Sheva, but buyers kept bids at $430-435/mt cfr Nhava Sheva. 


Indian ferrous scrap market was not in sync with the international markets. Domestic ferrous scrap availability has eased and to a large extent, has been able to cater to the present demand level. Thus, despite a jump in Turkey and rising demand from Pakistan and Bangladesh, Indian buyers were unwilling to raise offers, discouraging most sellers from offering material. Domestic steel prices showed a mixed trend, slowing the rate of price rise in the country for imported scrap. 

The Davis Index for US-origin HMS 1&2 (80:20) settled at $445/mt cfr Nhava Sheva, unchanged from the prior week in absence of trades. The indexes for #1 busheling, Turning and P&S scrap showed an uptick by $15, $11, and $8/mt this week to settle at $486/mt, $401/mt, and $463/mt cfr Nhava Sheva, respectively.


In the domestic market, billet and domestic scrap showed an uptick in demand on Friday. Billet prices were at Rs42,700-42,800/mt ex-works Mandi. Domestic HMS 1&2 (80:20) was flat at Rs30,000/mt ($411/mt) delivered Mumbai mill. 


Imported scrap demand could find support from the strengthening international billet market. Iranian billet prices were at $570-575/mt fob Iran pushing Indian mills to target above $585-590/mt fob India. On Friday, Q235 150mm square billets prices in China gained CNY10/mt to CNY3,800/mt ex-works Tangshan including the 13pc VAT. The impact of lockdown in the Hebei province, China’s largest steelmaking hub remains to be seen in the coming days.  



The daily Davis Index for containerized shredded, Friday, settled at $485.05/mt cfr India subcontinent, up by $1.29/mt. The index rose $20/mt from the prior Friday. The index for containerized US-origin HMS 1&2 (80:20) settled at $450.16/mt cfr India subcontinent, up by $0.65/mt. Most suppliers resumed negotiations, but US recyclers preferred to focus on the domestic market where prices are rising while held onto material as they wait for prices to rise in the coming days. International freight rates are rising further amid shortages. 




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