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

Imported ferrous scrap prices in India continued to be under pressure despite a recovery in finished steel prices for some products. Inquiries for imported scrap remained high amid limited domestic scrap availability. Indian buyers refrained from trades since finished steel demand has failed to pick up. Another cause of concern was Chinese HRC suppliers resuming exports to Vietnam and Asian markets. This would pressure flat steel prices in the coming days.  


The daily Davis Index for containerized shredded settled at $316.79/mt cfr Nhava Sheva, down marginally by $1.07/mt from Friday. Bids for shredded were firm at $315-317/mt cfr Nhava Sheva with most suppliers resisting these levels. Indian buyers are unlikely to book material if prices do not decrease. Yards and traders believe a steep drop in prices is less likely thus a few suppliers kept offers for containerized shredded at $318-322/mt cfr Nhava Sheva and Mundra citing that levels as ‘workable’.  


The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $298/mt cfr Nhava Sheva, Monday, up $1/mt from Friday. Deals for Dubai-origin HMS 1&2 (80:20) were at $298-305/mt cfr Nhava Sheva. Mills’ bids dropped in the range $290-295/mt cfr Nhava Sheva on Monday. Scrap grade #1 HMS from Dubai traded at $305/mt cfr Nhava Sheva Friday against prior offers of $310/mt cfr Nhava Sheva.  


The index for US-origin HMS 1&2 (80:20) settled at $298.93/mt cfr Nhava Sheva, up by $2.68/mt from Friday. The collection prices in the domestic market in US remain high lending support to higher scrap prices. 


HMS 1&2 (80:20) from Europe, South America, and West Africa traded in the range $290‑300/mt cfr Nhava Sheva Monday. Indian buyers are reluctant to buy ferrous scrap at the moment amid the lull in the Turkish scrap market.


South African ferrous scrap exports resumed with the allowance from the export authorities. It had stopped releasing of new export permits to deal with the negative impact of the COVID‑19 outbreak on domestic industries. A few trades for HMS 1&2 (80:20) from Australia were reported at $295-300/mt cfr Nhava Sheva.


In the domestic market, weak demand and limited construction activity pressured scrap prices. Barring major steel producers, most mills are still operating at 60-80pc capacity. Small and medium-scale electric arc and induction furnaces are struggling to find a foothold in the competitive market. Amid pressure on their profits and strained cash flow, mills are waiting for prices to drop before restocking scrap.


In the export market, there were an increasing number of billet trades in Asian markets. SE Asia was active in the market paying $445/mt cfr Philippines for Indian billets, down $5/mt from the prior deal. Mills were targeting $430/mt fob levels but failed to close deals.



The Davis Index for containerized shredded, Monday, settled at $311.49/mt cfr India subcontinent, up by $1.24/mt from Friday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $293.4/mt cfr India subcontinental, up by $4.49/mt. Increased number of trades, firm freight charges and limited supply pushed prices up. 




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