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

Imported ferrous scrap prices in India declined further on Thursday following a week-long drop in domestic ferrous scrap and billet prices. Buyers lowered their bids amid low finished steel demand. Major mills booked ferrous scrap on a need basis as they ramped-up production. Pressure from falling Chinese steel futures kept a few buyers away from the market. Heavy rains in Maharashtra and Gujarat held buyers back.  


After a long pause, Turkish mills finally indicated softening with new negotiations start taking place in the market. In Turkey, US-origin HMS 1&2 (80:20) bulk prices, however, remained flat $295/mt cfr Turkey, down $5/mt from last week in absence of trades. There were indications for Baltic origin HMS (80:20) in bulk at around $290-293/mt cfr Turkey Thursday. Despite fewer bids from mills this week, suppliers anticipate a strong market in October and refused to sell at current levels. Inquiries for imported scrap remains high with limited domestic scrap availability. 


The daily Davis Index for containerized shredded settled at $309.94/mt cfr Nhava Sheva, down by $3.56/mt. Bids for shredded were at $308-310/mt cfr Nhava Sheva countering offers of $312-313/mt cfr Nhava Sheva on Thursday. Most traders find shredded scrap non-viable at the moment and not many trades reported this week. Prices have lost over $15/mt in the last 10 days following weakening domestic prices. 


Indian buyers focused on low priced scrap cargoes as they refrain from booking material at present price levels, but yards and traders believe a steep drop in prices seems unlikely. 


In the bulk market, offers for HMS 1&2 (80:20) were in the range of $310-315/mt cfr Kandla with no buying interest, bids were lower at upto $300/mt cfr Kandla on Thursday. 


In the export market, offers for buyers in Thailand and the Philippines were around $450-455/mt cfr SE Asia from India and Iran. Indian mills, however, are likely to decrease billet offers to $420-425/mt fob levels.


The Davis Index for HMS 1&2 (80:20) of UAE-origin dropped by $4/mt to $293/mt cfr Nhava Sheva, Thursday. Deals for Dubai-origin HMS 1&2 (80:20) were at $293-295/mt cfr Nhava Sheva with bids dropping to $290/mt cfr Nhava Sheva on Thursday. Dubai-origin #1 HMS traded at $298-300/mt cfr Nhava Sheva as offers continue despite extension in the ferrous scrap export ban by the UAE government. 


The index for US-origin HMS 1&2 (80:20) settled Thursday at $295.71/mt cfr Nhava Sheva, down by $1.79/mt from Wednesday. Indian mills placed bids for the UK and US-origin HMS 1&2 (80:20) at $290-293/mt cfr Nhava Sheva. But most suppliers believe the downside is limited and ferrous scrap prices could receive support in October when demand recovers. The possibility of a second wave of COVID-19 in Europe and UK markets could hit steel prices bringing triggering a free fall in imported scrap.


Indian mills lowered bids for imported scrap by another $5-10/mt, bids HMS 1&2 (80:20) from Europe, South America, and West Africa were at $285-290/mt cfr Nhava Sheva on Thursday. A few trades for HMS 1&2 (80:20) from Australia were reported at $295/mt cfr Nhava Sheva. Offers for Turning scrap was at $265-270/mt cfr Chennai on Thursday. 



The Davis Index for containerized shredded, Thursday, settled at $305.21/mt cfr India subcontinent, down by $2.66/mt from Wednesday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $290.76/mt cfr India subcontinental, down by $1.52/mt from a day prior. 



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