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

Imported ferrous scrap prices in South Asia remained firm as buyers continued their purchases. Most mills have ramped up daily production rates. Mills in Pakistan and India accepted higher offers for containerized scrap. 

Suppliers thus offered limited volumes as they held onto their material in hopes of better prices in the coming days. 

US-origin HMS 1&2 (80:20) bulk prices remained flat at $285/mt cfr Turkey. Turkish steel producers have slowed down their deep-sea purchases since the long steel market in the country was affected by the weakening of Turkish lira. The Turkish lira was at TRY7.33 against US$ 1 from TRY6.95 on Aug 4. 

Buyers are, therefore, waiting for the market to offer more clarity on the prices. 


The Davis Index for containerized shredded on Tuesday settled flat at $307.28/mt cfr India subcontinent. Supplier yards kept offers high but buyers searched for lower-priced material .The index for containerized US-origin HMS 1&2 (80:20) settled at $290.35/mt cfr India subcontinent. Fall in container freight rates pulled the index down in the country. 



Bangladeshi steel mills slowed inquiries for containerized scrap. Demand for domestic steel is slow at present but is expected to spur in the last quarter of 2020. Some mills are still waiting for their cash flows to strengthen and rains to subside before booking more material. 


The daily Davis Index for containerized shredded settled at $320/mt cfr Chattogram, up by $1.67/mt. Offers for shredded from leading UK yards were at $322-325/mt cfr Chattogram on Wednesday. Most steel mills in Dhaka though remained away from trades at these price levels and looked for the lower-priced shredded from other supplier countries. These mills are also likely to consider the delivery time before booking scrap. A few trades for Australian shredded were in the range $312-315/mt cfr Chattogram. 


The index for Latin America-origin HMS 1&2 (80:20) settled at $300/mt cfr Chattogram, unchanged from Tuesday. A few containers traded at the index price. Offers for #1 HMS from Brazil, Chile, and Europe were at $305/mt cfr Chattogram, with bids at $295-300/mt cfr Chattogram from small scale furnaces. 


The index for US-origin HMS 1&2 (80:20), Wednesday, was at $305/mt cfr Chattogram, up by $0.43/mt from Tuesday. Sellers kept offers for HMS 1&2 (80:20) above $310/mt cfr Chattogram, trades, however, were not reported above $303-305/mt cfr Chattogram. 


Pakistan ferrous scrap importers purchased limited volume as they are waiting for clarity in price direction. Finished steel prices in the country were firm fuelled by strong imported scrap prices. Many domestic steel mills slowed trades amid limited cash flow. Gadani yards, however, reaped benefits of government incentives for steel businesses. 

Recyclers were ready to pay $30/ldt higher for scrapped ships to attract suppliers. Most yards in Pakistan do not have environment-friendly facilities like in Alang, India.  


The daily Davis Index for containerized shredded settled at $314.11/mt cfr Port Qasim, up by $0.24/mt. Trades for the US and Europe-origin shredded were at $312-315/mt cfr Port Qasim. Offers by UK suppliers for the grade were at $315-320/mt cfr Port Qasim.  

The price gap between imported shredded and domestic shredded has broadened to $20-25/mt from $10-15/mt earlier. Many buyers are expecting a slight fall in scrap prices after mid-August. Buyers preferred shredded scrap over HMS 1&2 (80:20) for the duty and quality advantages it offers. 


The country’s prime minister has initiated new schemes that are expected to push infrastructure projects in the country. In the domestic market, Bala billet prices were at PKR92,500/mt and G-60 billet at PKR97,000/mt ex-works Punjab. Semi-finished steel prices have been rangebound for around two weeks. 


The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $303/mt cfr Port Qasim, up by $0.5/mt from Tuesday. Trades for UAE-origin mixed #1 HMS and P&S were at $305-308/mt cfr Port Qasim. Most UAE suppliers have managed to stay in the market despite an official ban on exports.  


The index for US-origin HMS 1&2 (80:20) settled at $297.50/mt cfr Port Qasim, up by $1.25/mt from Tuesday. Most US yards, however, offered material at $300-305/mt cfr Port Qasim. A few trades were reported at $295-298/mt cfr Port Qasim in anticipation of stronger domestic steel demand in the coming days. Mills are working at 100pc capacity now. 



Indian domestic steel demand has gradually improved leading mills to operate at higher capacity utilization rates. Most major steelmakers are operating at pre-pandemic levels with the return of steel demand from OEMs and alloy-making industries. Domestic ferrous scrap and Sponge iron prices spiked on Monday by Rs1,000-1,500/mt delivered works pushing many mills to resume inquiries for imported scrap. 

Scrap inventories with many EAF and induction-based steelmakers are fast depleting and traders expect these mills to aggressively buy scrap in August. 


The daily Davis Index for containerized shredded settled at $312.50/mt cfr Nhava Sheva, up by $0.12/mt from Tuesday. A few offers for UK/European-origin containerized shredded were at $313-318/mt cfr Nhava Sheva on Tuesday. Suppliers held offers citing higher bids from other subcontinental markets.


The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $296/mt cfr Nhava Sheva, up by $0.37/mt from Tuesday. UAE suppliers continued to hold offers firm on the expectation of higher bids from Pakistani buyers. 

Several deals for Dubai-origin material were heard at $295-300/mt cfr Nhava Sheva for a shorter delivery period. If the demand remains strong, most mills could book scrap from Dubai in need of quicker deliveries. Surprisingly, the ongoing ban on scrap exports has had minimal impact on trades.  

Offers for US-origin HMS 1&2 (80:20) were at $293-295/mt cfr Nhava Sheva on WednesdayThe index for US-origin HMS 1&2 (80:20) settled at $294/mt cfr Nhava Sheva, up by $1.22/mt from Tuesday. Few mills raised bids by $3-5/mt from late last week to procure containers.

($1=Rs74.77; PKR168.6; BDT84.83)


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