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

Indian imported ferrous scrap prices were mixed Thursday as HMS scrap trades concluded at slightly higher prices. Mills are targeting lower ferrous scrap prices but suppliers revoked low-priced offers anticipating a recovery in the coming days. Inquiries gained momentum as China is expected to return from a week-long golden week holiday on Monday offering clarity on global price direction. 


The Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, rose by $4/mt to $288/mt cfr Nhava Sheva from Wednesday. Deals for Dubai-origin HMS 1&2 (80:20) were at $285-290/mt cfr Nhava Sheva with some offers heard at $290-292/mt cfr Nhava Sheva on Thursday. Offers for containerized #1 HMS from Dubai, however, were above $300/mt cfr Nhava Sheva against bids of upto $295/mt cfr Nhava Sheva on Thursday. 


The daily index for US-origin HMS 1&2 (80:20) Thursday settled at $290/mt cfr Nhava Sheva, up by $3.57/mt from Wednesday. Trades for the US and UK/EU-origin HMS 1&2 (80:20) were at $288-290/mt cfr Nhava Sheva. Most suppliers were unwilling to trade amid indications of demand recovery in October. Meanwhile, buyers are struggling as the demand from the infrastructure sector is yet to fully recover, while strengthening the Indian rupee against the US dollar has lowered export realisations.


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. However, it is less likely to encourage ferrous scrap trades amid weak end-user demand.  


“It seems everyone including yards, suppliers, traders, and buyers are in a confused state, more deals in Turkey and China’s move post-Golden week could offer direction to the market,” said an indentor.   


The daily Davis Index for containerized shredded Thursday settled at $307.06/mt cfr Nhava Sheva, down by $0.06/mt from Wednesday. Most traders and supplier yards offered shredded at $307-310/mt cfr Nhava Sheva on Thursday against a few trades reported at $305-307/mt cfr Nhava Sheva. Only alloy makers were in a position to book shredded scrap while most other buyers prefer domestic scrap over imported. UK yards were unwilling to offer below $310/mt cfr Nhava Sheva amid weak global cues. 


In the bulk market, weak export sentiments in billet markets in SE Asia and China forced buyers to turn silent. No trade for US-origin HMS 1&2 (80:20) materialized with buyers holding their bids at $290-295/mt cfr Kandla against offers of $305-310/mt cfr Kandla. Bulk imports have remained non-viable and buyers could stay away for the rest of 2020. Domestic scrap availability has improved with collection activities gradually returning to pre-COVID-19 levels.


Iranian billet exporters traded billet at $408-410/mt fob Iran offering support to international billet prices. Most buyers are in a wait-and-watch mode to gain more clarity on the global market. 



The Davis Index for containerized shredded, Thursday, settled at $299.67/mt cfr India subcontinent, down by $0.88/mt from Wednesday. The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $282.8/mt cfr India subcontinental, up by $2.81/mt from the prior day. 



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