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

Indian imported scrap buyers were hesitant on Tuesday to book containerised ferrous scrap on global uncertainties. Market opinions were diverse about the price trend in the coming days as actual end-user demand remains slow. Anticipation of automotive sector picking-up in the festive season and subsiding impact of monsoon keep hopes alive for ferrous scrap trades. Prices, however, on Tuesday saw mixed changes with a few mills waiting for marginal correction before booking materials.

In Turkey, steel mills reported have booked short sea cargoes at $264-267/mt cfr Turkey for HMS 1&2 (80:20), though index rose to $280/mt cfr Turkey on bullish supplier sentiments.  


Though Bangladeshi mills remained active for bulk enquiries, Indian mills showed very little interest in booking more material with offers for HMS 1&2(80:20) in the range $295-300/mt cfr Kandla. However, no trades were reported. 

Indian suppliers in the South and West coast were looking for billet export at $415-420/mt fob India, however, no buyers in China and Southeast Asian markets were interested to take positions at above $405/mt fob India or $435-440/mt cfr SE buyer.  


A major trader predicted imported ferrous scrap prices moving up as Indian mills will now start October bookings. After Japan’s uptrend, US suppliers seem bullish with recent containerised trades reported in Taiwan at higher prices. It is being anticipated that for September the US domestic settlements will be up $20-40/gt across all steel products.  


Trades in India slowed further after the government announced cancellation import permits for ferrous scrap exporters in Punjab. Licenses of all importers have been cancelled and it will take at least a week to normalise, so all buyers would prefer domestic scrap, a Punjab-based steelmaker told Davis Index.


The daily Davis Index for containerized shredded Tuesday settled at $309/mt cfr Nhava Sheva, inch up by $1.5/mt from Monday. Though offers for UK-origin containerized shredded were at $310-313/mt cfr Nhava Sheva and Mundra, no buyers were interested at those levels. Bids from mills were around $305/mt cfr Nahva Sheva.  


The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $291.43/mt cfr Nhava Sheva, down by $1.07/mt from Monday. Deals for Dubai-origin HMS 1&2 (80:20) were at $290-292/mt cfr Nhava Sheva, however, bids on Monday dropped to $285/mt cfr Nhava Sheva. Buyers preferred UAE-origin materials for its shorter delivery period compared to that of the UK or the US. Pakistani buyers were still paying higher as Indian mills continue lose tonnages to Pakistan buyers.


Trades for HMS 1&2 (80:20) from Australia and Brazil were reported at $285-290/mt cfr Nhava Sheva depending on quality. West African suppliers are offering HMS at $270/mt cfr Chennai. Southern-based TMT makers were waiting for billet demand to pick-up.


The index for US-origin HMS 1&2 (80:20) settled at $289/mt cfr Nhava Sheva, up by $0.5/mt from Monday. Bids remained low while trades were heard at $290/mt cfr Nhava Sheva.  

In the shipbreaking markets, news of operations being allowed to resume in Sachana yard in Gujarat for ship recycling activities kept market supported. Internationally, offers jumped by $20-25/ldt over the last week. Scrapped containers and tankers were offered at $350-360/ldt cfr Alang as demand showed signs of recovery after a long gap.  



The Davis Index for containerized shredded, Tuesday, settled at $301.1/mt up marginally from $300.38/mt cfr India subcontinent Monday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $281.6/mt cfr, down from $282/mt cfr India subcontinent on Monday.  





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