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

Imported ferrous scrap offers in India stayed bullish on global cues. Buyers showed very little interest to accept these prices. A few buyers with low stocks and tightening domestic scrap supply bought limited tonnages to meet their minimal production requirements. 


The weekly Davis Index for cast iron, rotors, and drums on Wednesday, rose by $20/mt to $435/mt cfr Nhava Sheva. Offers for Cast rotors heard above $450-460/mt cfr Nhava Sheva as collection rates fell amid prolonged winter and lockdowns to control the pandemic. Elevated container rates and strong domestic demand also forced suppliers to quote high. 


A few distressed deals for ready-to-sell materials concluded at $420-425/mt cfr Nhava Sheva. Traders were quick to single out these deals saying we would not be able to entertain fresh orders below $460/mt cfr Nhava Sheva. 


The daily Davis Index for containerized shredded, Wednesday, settled at $456.25/mt cfr Nhava Sheva, down by $1.88/mt. Buyers’ sentiment turned bearish amid fear around renewed COVID-19-related restrictions. Offers, however, hovered at $460-465/mt cfr Nhava Sheva. Most secondary steel mills shied away from trade citing high offers. 


The freight rate gap between Pakistan and India from various suppliers have widened to above $10-15/mt. This has created a price gap for actual trades from the UK/EU and the UAE on a landed cost basis. Indian mills continued to bid for HMS at $400-410/mt, even as Pakistanis accepted offers at $425-430/mt cfr Qasim, said traders. 


On Wednesday, Dubai-origin HMS #1 and P&S offered at $425-430/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, settled unchanged at $419/cfr Nhava Sheva. Trades paused as domestic steel demand lost steam. Mills refused to bid above $410-415/mt cfr Nhava Sheva for Dubai-origin HMS 1&2 (80:20). 


The daily Davis Index for US-origin HMS 1&2 (80:20), Wednesday, rose by $0.71/mt to $418.21/mt cfr Nhava Sheva. Increased demand in Taiwan and Vietnam along with bullish domestic demand, pushed most US suppliers to raise their offers on a fas basis. Offers for West and East African HMS for 20-21mt loading with CI-GI were above $395/mt cfr Nhava Sheva and $405/mt cfr Chennai, respectively. 

Shipbreaking scrap prices in Alang remained stable. The fear of another wave of COVID-19 pandemic and related restrictions in major ferrous scrap markets like Maharashtra, Gujarat, Chennai and Punjab dampened sentiment. 


Iron ore and Sponge iron prices in India are expected to drop with more mines resuming operations which could ease supply. 


Ingot prices in Mandi Gobindgarh recovered by Rs600-700/mt on Wednesday. Ingot traded at Rs39,700-39,800/mt ex-works Mandi Gobindgarh boosting ferrous scrap purchases. 


Southeast Asian billet up 

Amid firm imported scrap prices, billet prices in Southeast Asian countries like Thailand, Vietnam, and China rose by $20-25/mt from the prior week. Billet trades reported at $580-585/mt cfr Southeast Asia. 


On Tuesday, China announced stricter pollution curbs marginally hitting demand. Australian iron ore dropped by over $2/mt to $174.8/mt cfr China, while futures remained mixed on Wednesday. Chinese steel prices adjusted by CNY10-20/mt with domestic billet prices stable at CNY4,230/mt ex-Tangshan. 



The daily Davis Index for containerized shredded, Wednesday, settled at $459.48/mt cfr India subcontinent, down by $0.42/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $422.83/mt cfr India subcontinent, up by $0.9/mt. Freight charges across the world remained elevated keeping the landed cost of ferrous scrap firm in all Asian countries.





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