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

Indian ferrous scrap importers actively booked ferrous scrap containers before prices rise further. Demand for imported scrap is healthy due to a shortage of domestic Sponge iron, scrap, and iron ore. Mills mainly bought HMS scrap from Australia and the UAE. Shipments booked earlier are expected to arrive late-November, easing the supply crunch in the market. Post-Diwali, the government has given strong financial stimulus with expectations of robust steel demand and construction activities to pick up the pace.


Few buyers were cautious about lockdown restrictions in Ahmedabad, Delhi, and many regions where COVID-19 cases are spiking. This could slow down the uptrend in prices, said traders.


In Turkey, the Davis Index for US-origin HMS 1&2 (80:20) rose to $332/mt cfr Turkey, rising $25/mt in a week’s time. Most suppliers focused on catering to the Turkish bulk market and diverted supplies from Asian markets with indications of a further $15-20/mt hike in the coming days.


The Davis Index for containerized shredded on Friday settled at $358.29/mt cfr Nhava Sheva, up by $22.73/mt from pre-Diwali levels. Trades for shredded from the US and Canada were in the range of $355-357/mt cfr Nhava Sheva, with offers largely of $360/mt cfr Nhava Sheva on Friday. A few offers reported at $365/mt cfr Chennai basis. Indian buyers continued shredded scrap trades as per their requirement and to maintain just-in-time inventories.  


Traders from the UAE also raised HMS offers in the bullish Indian import market. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $342/mt cfr Nhava Sheva, up by $18/mt from November 12. Trades continued to materialise every other day at higher prices on sustained demand. Offers for containerized #1 HMS without the cast and galvanized iron from Dubai were above $345-350/mt cfr Nhava Sheva on Friday, with a few deals reported at $345/mt cfr Nhava Sheva.


The Davis Index for US-origin HMS 1&2 (80:20) was at $340/mt cfr Nhava Sheva on Friday, up by $3.07/mt from Thursday. On a weekly basis, the index jumped by $15/mt. Offers for the grade in containers were in the range $340-345/mt cfr Nhava Sheva amid short supply, depending on quality. There are no offers from the US and Australian bulk suppliers. Bulk demand could recover for January shipments if domestic demand stays bullish.


Trades for containerized Australian HMS 1&2 (80:20) were at $340-345/mt cfr Chennai with index rising $18/mt from November 12. One of the leading primary steel mills, SAIL, has announced a hike in its long product prices by Rs1,500/mt and flat steel product prices by Rs750/mt ex-works keeping sentiments lifted. Other HMS suppliers like South Africa and West Africa were away on permit issues and restricted inflows. 


In the billet export market, mills were targeting to sell billets at above $475/mt fob or $495/mt cfr SE Asia and China which buyers were unwilling to accept. Indian suppliers thus refrained from offering bulk volume expecting better realization in the domestic market.  

The index for #1 Busheling grade settled at $366/mt cfr Nhava Sheva, up by $15/mt from the prior week. Suppliers sought above $370/mt cfr Mundra for busheling and cast-iron rotor drums. The weekly index for Turning scrap was at $305/mt cfr Nhava Sheva, up by $12/mt from last week, with offers on Friday not below $310/mt cfr Nhava Sheva. P&S scrap traded at $355-360/mt cfr Nhava Sheva in thin quantities, with the index for the grade rising by $20/mt to $358/mt cfr from prior Friday.  



The Davis Index for containerized shredded, Friday, settled at $360.48/mt cfr India subcontinent, up by $3.05/mt from Thursday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $342.15/mt cfr India subcontinent, up by $2.77/mt from Thursday.  






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