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

Imported ferrous scrap prices in South Asian markets were flat to down on Tuesday amid prolonged weak demand. Importers awaited clarity in the market direction before resorting to trades. Many suppliers have diverted their attention to the Southeast Asian markets like South Korea and Taiwan where demand and prices were higher compared to South Asian markets. 



Indian domestic semi-finished and finished steel prices dropped by another Rs200-400/mt from Monday, weighed down ferrous scrap demand.  

Anticipating an acute shortage of ferrous scrap in July-August, a few buyers in India resumed enquiries. But trades are still thin as mills continue to face a labour shortage. The rising COVID-19 cases in a few major states also increased fears about the possibility of imposition of transport restrictions. 

The daily Davis Index for containerised shredded settled at $286/mt cfr Nhava Sheva, down by $1/mt. Offers were at $288-290/mt cfr Nhava Sheva for material from the UK and Europe. Though a few buyers raised their bids, they still fell short of offers and were at $280/mt cfr Nhava Sheva. 

The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $272/mt cfr Nhava Sheva, down by $1/mt from Monday. Offers did not match the expectations of Indian buyers. 

The index for US-origin HMS 1&2 (80:20) settled at $273/mt cfr Nhava Sheva, unchanged from Monday. US suppliers raised offers following strengthening prices in Taiwan. 



Pakistan government has announced a smart lockdown allowing selective activities in Lahore to deal with COVID-19 situation. 

Transportation activities thus have been hampered again hitting imported ferrous scrap trades.  

In Karachi, major steel mills are waiting for ferrous scrap prices to decline before booking more material.   

The Davis Index for US-origin containerized shredded settled at $290/mt cfr Port Qasim, down by $2/mt from Monday. Thin trades were reported at the index price. A few suppliers from the UK and Europe still held onto their offers for shredded at $294-295/mt cfr Port Qasim. Buyers, however, continued to resist high offers. 

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $274/mt cfr Qasim, unchanged from Friday. A few trades were reported at the index price. There were limited sellers in the market due to the export ban imposed by the UAE government. 

The index for US-origin HMS 1&2 (80:20) was at $278/mt cfr Qasim, unchanged from Monday. A few offers were at $280/mt cfr Qasim on Tuesday, with bids at $275/mt cfr Qasim.  



Bangladesh’s national budget failed to lift steelmakers’ sentiment. Many small-scale induction furnaces are still struggling with to secure raw materials like ferroalloys and DRI, imported primarily from India. These plants remained shut despite having ferrous scrap inventories in hand. The daily Davis Index for containerised shredded settled at $303/mt cfr Chattogram, unchanged. Offers for shredded were still at $305-310/mt cfr Chattogram. An Australian yard was heard to have sold shredded at $310/mt cfr Chattogram to a Dhaka-based steel mill. 

The index for Latin America-origin HMS 1&2 (80:20) inched down by $2/mt to $278/mt cfr Chattogram. Offers for Brazilian scrap were in the range of $280-285/mt cfr Chattogram, while a few traders booked the same grade at $260-265/mt cfr Chattogram.  

The index for US-origin HMS 1&2 (80:20) settled at $285/mt cfr Chattogram, down by $1/mt from Monday. Some yards increased offers for the grade to $290/mt cfr Chattogram citing limited availability and increased global prices. 


East Asia 


Imported ferrous scrap prices in Taiwan were unchanged on Tuesday with the index for US HMS 1&2 (80:20) settling at $251/mt cfr. Offers were at $251-$255/mt cfr. Thin trades were heard as finished steel demand remains low. A deal for US-origin #1 HMS was reported at $255/mt cfr Taiwan. 

Offers for Australian-origin HMS 1&2 (80:20) were at $240-245/mt cfr.

Japanese traders still held offers firm as they continued to fetch higher prices in the domestic markets. 

Tokyo steel hiked domestic scrap purchase prices by JPY500-1,000/mt. The mill has increased its bids for the seventh time in June. Prices have increased by a total of JPY3,000-4,000/mt this month. 

In the latest hike, bids were raised by JPY500/mt for deliveries to Tahara and Kyushu plants and by JPY1,000/mt delivered Okayama works, effective June 17. Bids for #2 HMS are at JPY26,500/mt($247/mt) del to Utsunomiya plant in the Kanto region. 

Scrap generation remains tight due to lowered manufacturing activities. Major traders, on the other hand, are holding on to their stocks in the hopes of prices to rise further in the near term.



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