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

Indian imported ferrous scrap prices strengthened further on Monday following an uptrend in domestic steel demand and prices. Indian mills are expected to accept a bit higher offer levels this week amid bullish offers for bulk cargoes to Turkey. Most steelmakers were, however, cautious and stuck to booking for immediate requirements as COVID-19 infections in the country continue to rise rapidly.  


A few trades for HMS scrap from Dubai, the US and Australia were reported has market anticipated a pick up of demand from the automotive sector on festive demand. Primary steelmakers are set to raise finished flat steel prices from Tuesday, while markets in Maharashtra and Gujarat are expected to return to active trading after the end of Ganesh festival from Wednesday onwards. In most parts of India, despite a continued rise in COVID-19 cases, economic activities including steel production has returned to pre-COVID levels.  


In Turkey, the daily US-origin HMS 1&2 (80:20) rose to a seven-month high of $289.89/mt cfr Turkey on Friday. Expectations of stable demand from billet and rebar markets pushed up offers from most suppliers to $295/mt cfr Turkey in bulk cargoes.  


The daily Davis Index for containerized shredded Monday settled at $314/mt cfr Nhava Sheva, up $1/mt from Friday. UK-origin containerized shredded were offered at $315-320/mt cfr Nhava Sheva and Mundra on Monday. Only major steelmakers remained active for shredded scrap bookings while traders preferred HMS 1&2 (80:20) against shredded in line with recent consumption patterns. 


In the bulk market, Indian mills were slower with limited interest to book scrap seeking clarity on the end-user demand revival. Offers for HMS 1&2(80:20) were in the range $305-310/mt cfr Kandla, however, no trades were reported. Indian billet makers were looking for billet export at $420-425/mt fob India, however, they are yet to get these levels from buyers in China and Southeast Asian markets.  

Domestic ferrous scrap and DRI prices are rising on the other hand, Indian Rupee has gained against US dollar to 73.59 against 74.5 in the prior weeks. This could help importers resume scrap trades as demolition activities have also resumed in supplier countries.  


The daily Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $302/mt cfr Nhava Sheva Monday, up by $4.07/mt from Friday. Deals for Dubai-origin HMS 1&2 (80:20) were at $295-300/mt cfr Nhava Sheva. Suppliers refuse to accept lower bids of $285-290/mt cfr Nhava Sheva.


Trades for HMS 1&2 (80:20) from Australia and Brazil were reported at $295/mt cfr Nhava Sheva and $300-302/mt cfr Chennai depending on quality. West African suppliers are offering HMS 1&2 (80:20) at $280/mt cfr Nhava Sheva on Monday.  


The index for US-origin HMS 1&2 (80:20) Monday settled at $300/mt cfr Nhava Sheva, up by $3/mt from Friday. Bids remained low while trades were reported near the index prices. Trades for Fabrication scrap from UAE was heard at $305/mt cfr Nhava Sheva on Monday.


In shipbreaking markets, most recyclers remained optimistic about demand for steel plates. Recyclers said there is a huge shortage of domestic scrap.  



The Davis Index for containerized shredded, Monday, settled at $306.90/mt cfr India subcontinent, up marginally by $0.9/mt from $306/mt cfr India subcontinent on Friday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $292.2/mt cfr India subcontinental, up by $2.4/mt cfr India subcontinent on Monday.



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