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

Indian imported HMS scrap prices rose in sync with global cues. Trades were limited amid volatile domestic prices and mills taking a cautious approach against restocking ferrous scrap.  


In Turkey, the daily US-origin HMS 1&2 (80:20) Wednesday settled at $302.2/mt cfr Turkey, up $2.2/mt from Tuesday. A 32,000mt bulk cargo of mixed high-grade scrap traded at an average price of $312/mt cfr Turkey, which is likely to boost sentiments. Most EAF makers in Turkey concluded rebar trades at prices up by TRY60-70/mt ($7-9/mt).


The daily Davis Index for containerized shredded on Wednesday was unchanged at $324/mt cfr Nhava Sheva. UK-origin containerized shredded were offered at $325-330/mt cfr Nhava Sheva and Mundra. With scrap trending up in global markets, most traders refused to offer material at lower levels. Few suppliers offered US-origin shredded amid higher realizations in their domestic markets. Very few trades for shredded were reported at $320-322/mt cfr Nhava Sheva.


Billet export offers high

Indian billet export offers strengthened to $450-455/mt cfr Southeast Asian buyers in line with rising offers from Iran and CIS suppliers. However, in the domestic market, ingot and billet prices remained under pressure on weak demand. In most regions, billet and ingot prices dropped by Rs200-400/mt on Wednesday.  


Supply tight in North 

In northern India, scrap supplies tightened as steel demand recovered gradually. Most large and medium scale steelmakers are operating at 100pc capacity. Demand for scrap recovered but supply from scrap generating industries remained limited.  


Many Indian ferrous scrap importers had avoided port and demurrage charges during COVID-19 and failed to clear shipments from ports. This is holding up traders and suppliers from taking additional risks as COVID-19 cases surge in India. Mills have turned inactive in the bulk markets and have shifted to containerised trades.


Vietnamese mills paid around $10/mt high for Indian HRC this week. Strong sentiments in the Vietnamese market amid auto demand recovery supported buyers to book ferrous scrap from Japan at higher prices. This has helped sentiments in Southeast Asian markets.    

The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $307.5/mt cfr Nhava Sheva Wednesday, up by $0.83/mt from Tuesday. Deals for Dubai-origin HMS 1&2 (80:20) were at $308/mt cfr Nhava Sheva. Suppliers refused to accept lower bids of $300/mt cfr Nhava Sheva. #1 HMS scrap from Dubai yard traded at $308-310/mt cfr Nhava Sheva.


The index for US-origin HMS 1&2 (80:20) Wednesday settled at $308/mt cfr Nhava Sheva, up $2/mt from Tuesday. Most US supplier yards have diverted their attention to Taiwan and Turkey markets where bids are higher than South Asia. A few trades of US and UK-origins HMS materialised in Bangladesh pushed up offers.



The Davis Index for containerized shredded, Wednesday, settled at $315.1/mt cfr India subcontinent, stable from Tuesday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $300.3/mt cfr India subcontinental, up from $1.5/mt cfr India subcontinent from Tuesday.



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