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

Imported ferrous scrap prices in India remained ‘flat to up’ as market sentiment continued to improve with the relaxations of lockdown in many states resulting in better cash flows. Suppliers have kept their offers firm on gradual pickup in demand from subcontinental buyers. Extended silence in bulk purchases from Turkey, however, could result in a marginal dip. But the downside is very limited, believe participants. 


The daily Davis Index for containerized shredded settled at $511.25/mt cfr Nhava Sheva on Monday, up $1.25/mt from Friday. A few small-tonnage deals to India turned sellers optimistic of a demand recovery in the coming days. Some suppliers are offering more volumes to India as mills here could be pressed to pay higher than their subcontinental counterparts, amid a spike in prices of domestic alternatives to imported scrap.  


The daily Davis Index for US-origin HMS 1&2 (80:20) settled unchanged at $485/mt cfr Nhava Sheva. Large-scale mills are likely to be in the market for imported ferrous scrap in the coming days as steel prices have started picking up in India. The daily index for UAE-origin HMS 1&2 (80:20) rose by $2/mt to $475/mt cfr Nhava Sheva. Trades reported as demand improved with rising steel prices. Sellers were bullish on strong global cues and high finished steel prices. 


On Monday, melting scrap offers in Alang rose by Rs200/mt from Saturday to Rs37,500/mt ex-yards. Easing oxygen supply for industrial use is likely to restart cutting operations at shipbreaking yards. In Mumbai, rebar prices remained unchanged from Saturday and rose by Rs200 to Rs48,600/mt ex-works, while ingot prices in the Mandi Gobindgarh were firm at Rs46,500-46,700/mt ex-works. Stable domestic fundamentals likely to support ferrous scrap demand in India. 


Meanwhile, iron ore and sponge iron prices in India stabilised. Supply for domestic ferrous scrap remains low hit by lockdown in major states while demolition in the industrial sector has remained subdued for over a month. 


In the Chinese spot market, weak futures weighed down steel prices on Monday. Rebar in Shanghai dropped by CNY50/mt from Friday to CNY5,200/mt ex-works. Domestic billet prices dropped by CNY80/mt to CNY4,940/mt ex-Tangshan, indicating soft sentiments in the Asian billet export markets. 



The Davis Index for containerized shredded, Monday, settled at $515/mt cfr Indian subcontinent, inch down by $0.04/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $489.45/mt cfr Indian subcontinent, down $2.05/mt.


On weekly normalised comparison, the containerized freight rates from New York port were at $44.66/mt, down $4.78/mt to India, at $50.49/mt, down $3.24/mt to Pakistan and $84.59/mt, up $2.91/mt to Bangladesh, respectively as updated on June 4 by Davis Index. Containers availability is expected to ease out gradually in the coming days. 



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