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

In India, demand for imported ferrous scrap improved amid tight domestic scrap supply. Large-scale steel mills have received numerous steel export orders which have lifted steel prices. Flat steel and rebar prices for May shipments are up by Rs1,000-3,500/mt. The number of new COVID-19 infections has shown signs of stabilizing under stringent restrictions. It could, however, take a few weeks for the situation to come under control as the vaccination drive has slowed due to a shortage of doses.  


Offers for containerized shredded from the UK/EU were at $470-475/mt cfr Nhava Sheva on Monday. The Davis Index for containerized shredded settled at $468.75/mt cfr Nhava Sheva, up by $3.75/mt from Thursday. On Friday, Mumbai-based traders were heard to have booked shredded at $465/mt cfr Nhava Sheva. While a producer bought the grade at $468/mt cfr Nhava Sheva from the US.


The index for US-origin HMS 1&2 (80:20), Monday, settled at $447.41/mt cfr Nhava Sheva, up by $3.41/mt from last Thursday.

Following strengthening demand for material from short transit routes from the Indian subcontinent, UAE traders raised offers for Indian buyers. The daily Davis Index for UAE-origin HMS 1&2 (80:20) was at $440/mt cfr Nhava Sheva, up by $5/mt. Offers for Dubai-origin HMS #1 were above $445-450/mt cfr Nhava Sheva. Dubai origin #1 HMS traded on Monday at $465/mt cfr Chennai from $460/mt cfr Chennai on Friday. 

On Monday, melting scrap offers in Alang increased by Rs200-300/mt to Rs37,200-37,300/mt ex-yards. Many yards have been forced to shut operations due to oxygen shortage, and recycling activities at Alang came to a standstill. For shipbreakers, offers rose above $500/ldt and most ships have been diverted to Bangladesh and Turkey. 


On Monday, JSW steel announced a price hike for HRC by Rs3,500/mt following a raise in asking rates by Shagang in China by CNY450/mt and by EUR20/mt by ArcelorMittal in Europe. 

In Mumbai, rebar prices rose by Rs200/mt following strengthened sentiments. Rebar prices were at Rs50,000/mt ex-works, up Rs600/mt in total from Thursday. Stricter movement restrictions to contain the virus in most major ferrous scrap consumer states including Maharashtra, Punjab, Goa, Haryana, have impacted inter-district transport and the availability of laborers amid extended lockdowns. In Chennai and Durgapur, however, activities picked up amid bullish export demand. 


In China, spot iron ore prices were at $186.8/mt cfr North China for 62pc Fe scrap content on Friday, down $3.8/mt from the day prior. The market closed for labor holidays during May 1-5. It is expected to resume after May 5. Domestic billet before closure traded at CNY4,990/mt cfr North China. Billet import offers are expected to cross $690/mt cfr China on Monday once the market resumes. Indian HRC deals were heard at $980/mt cfr Vietnam. 


The daily Davis Index for containerized shredded Monday settled at $472.91/mt cfr Indian subcontinent, up by $4.08/mt from Thursday; while that for containerized US-origin HMS 1&2 (80:20) was at $447.41/mt cfr Indian subcontinent, up by $3.42/mt from Thursday. 

On weekly normalized comparison, the containerized freight rates maintained by Davis Index were unchanged at $52.79/mt, $50.97/mt, and $80.22/mt from New York port to India, Pakistan, and Bangladesh, respectively, as updated on April 30.




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