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

Domestic ferrous scrap prices declined in India amid low demand for finished steel. Primary steelmakers reduced rebar, flat steel, and structural product price by Rs1,200-2,000/mt ($16.1/mt-$26.8/mt), depending on the product and market to liquidate piled up inventories.


Mills in Mumbai have cut production by 20-25pc to minimize and refrained from stocking raw material. Ferrous scrap suppliers reduced their offers to attract the bidders, and the daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs31,500/mt del Mumbai mills. The index for sponge iron settled flat at Rs29,100/mt delivered mills.


The bi-weekly index for HMS 1&2 (80:20) declined by Rs2,000/mt from last Thursday to Rs31,000/mt del Jalna mills, and the index for sponge iron fell by Rs300/mt to Rs31400/mt delivered mills.


Mills in the North bought ferrous scrap only to meet their daily melt requirements as demand from end-users for steel is low. The daily Davis Index for HMS 1&2 (80:20) declined by Rs300/mt to Rs34100/mt del Mandi Gobindgarh, and the index for sponge iron declined by Rs100/mt to Rs32,400/mt delivered mills.


Low demand and a tight supply of raw material kept prices for HMS flat in Goa and Chennai, and the bi-weekly index for HMS 1&2 (80:20) settled unchanged at Rs31,550/mt del Goa and Rs33,000/mt del Chennai mills.


Market participants expect a drop in ferrous scrap prices in the near term amid the ongoing monsoon and rising fear of a third wave of COVID-19 pandemic sending the country into a lockdown.



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