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

Domestic ferrous scrap prices remained firm on Tuesday amid tight supply. Demand, however, is under pressure as mills continued buying raw material only on a need basis.

 

The daily Davis Index for HMS 1&2(80:20) settled unchanged at Rs34500/mt ($470.45/mt) del Mumbai mills, and the index for sponge iron declined by Rs700/mt to Rs31,400/mt delivered mills.

 

Markets in the North saw an uptick in ingot prices during the first half of the day as sales improved. The daily Davis Index for HMS 1&2(80:20) rose by Rs200/mt to Rs38,800/mt del Mandi Gobindgarh, and the index for sponge iron rose by Rs400/mt to Rs34,400/mt delivered mills.

 

The bi-weekly index for HMS 1&2 (80:20) rose by Rs450/mt to Rs34,500/mt del Jalna mills, also on tight supply, and the index for sponge iron declined by Rs400/mt to Rs32,700/mt delivered mills.

 

Market participants could continue to adopt a just-in-time inventory approach until demand for semi-finished and finished steel picks up.

 

In East India, offers for ferrous scrap rose, and the bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs37,500/mt del Durgapur mills, while the index for sponge iron rose by Rs100/mt to Rs304,00/mt delivered mills.

 

Offers for seaborne scrap prices remained firm, but mills were largely away from booking material due to weak steel demand from the end-users.

 

In other markets, the bi-weekly index for HMS 1&2(80:20) settled flat at Rs35500/mt del Chennai mills, and the index for sponge iron declined by Rs200/mt to Rs30700/mt delivered mills. The bi-weekly index for HMS 1&2 (80:20) rose by Rs500/mt to Rs33,500/mt del Goa mills, and the index for sponge iron rose by Rs1,000/mt to Rs31,000/mt delivered mills.

($1=73.3)

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