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

Indian ferrous scrap importers resumed trades for HMS with the gap between domestic and imported stable. But only a few sellers were ready to match lower bids placed by Indian mills. 


Demand for imported ferrous scrap was supported by limited supply in the domestic market. Most steelmakers have announced price hikes of Rs2,000-2,500/mt for rebar and other finished steel products for August shipments. The price hike boosted market sentiment. 


The daily Davis Index for containerized shredded on Friday settled at $525/mt cfr Nhava Sheva, down $2.5/mt. The index dropped by $8.75/mt from July 30. Offers for shredded from the UK/EU and the US were at $525-535/mt cfr Nhava Sheva. But buyers were silent awaiting clarity on the prices. Softening prices in supplier countries for obsolete grades fueled expectations of a drop in prices. 


The daily Davis Index for UAE-origin HMS 1&2 (80:20) Friday rose $3/mt to $475/mt cfr Nhava Sheva. The index rose $5/mt from a week prior. There was a sustained recovery in demand for UAE-origin materials in Pakistan and India. For the UAE-origin #1 HMS, active trades reported at $485-495/mt cfr Nhava Sheva, Mundra and Chennai this week. 


The weekly index for P&S fell by $4/mt to $531/mt cfr Nhava Sheva, while the index for #1 busheling was at $550/mt cfr, down by $12/mt from July 30, trade inquiries for prime grades remained halted in India. 


In a silent market, the Davis Index for US-origin HMS 1&2 (80:20) was at $478.75/mt cfr Nhava Sheva. The index inched down by $1.25/mt from July 30. Despite softening global cues, recovery in HMS demand supported prices. 


Rates for domestic HMS 1&2 (80:20) at Rs36,000/mt ($485.7/mt) delivered Mumbai. While for imported HMS 1&2 (80:20) prices were at $475/mt cfr Nhava Sheva, which was around $500/mt including port handling and local transport costs. The gap between domestic and imported scrap prices has narrowed, as a result, mills are actively booking imports. 


Trading in Alang’s shipbreaking market remains halted due to transporters’ strike. In Mumbai, the asking prices for rebar were flat on Friday, while prices increased by around Rs1,000/mt to Rs50,000/mt ex-works from the prior week. In Mandi Gobindgarh, ingot traded above Rs45,600/mt ex-works, largely stable from the prior week. Domestic fundamentals continued to support imported scrap trades. 


International iron ore Fe 62pc prices dropped on Aug 5 in the spot market to $170.05/dmt cfr North China, by $13.1/dmt from the previous day. Prices dropped by over $12/mt from prior Friday amid the Chinese government’s stringent stance towards production cuts and price control. 


The daily domestic billet price in China on Friday dropped by CNY50/mt to CNY5,080/mt ($785/mt) ex-Tangshan inclusive of VAT. Billet prices in China dropped by CNY200/mt from last Friday. 


Buying interest for billet imports in China lagged considerably despite offers of $680-690/mt cfr China, down $30-35/mt from the peak seen in the earlier weeks. 



The daily Davis Index for containerized shredded on Friday, settled at $528/mt cfr Indian subcontinent, down by $2.8/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $487.13/mt cfr Indian subcontinent, up by $0.38/mt.


($1=Rs74.21; CNY6.46)

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