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

After a rise in the domestic ferrous scrap by around Rs2,000-2,500/mt in a week, overseas suppliers expect Indian demand for imported material to recover from next week. Demand for finished steel has also shown signs of recovery, rising Rs500-1,000/mt in a week. 


A continued wide gap between domestic scrap and equivalent imported scrap prices kept mills interested in the former.


The daily Davis Index for containerized shredded on Friday settled at $537.5/mt cfr Nhava Sheva, up by $2/mt. The index was up by the same amount from a week ago. Trades for shredded were slow amid a wide disparity between offers and bids. 


Mills sought clarity on the Chinese steel price trend before they book more scrap at present prices. A gap between HMS prices and prime grades is still wide with the availability for latter, including shredded remaining tight. 

The daily Davis Index for UAE-origin HMS 1&2 (80:20) inched up by $2/mt to $472/mt cfr Nhava Sheva. From prior Friday, it lowered by $6/mt. Most UAE-based sellers could return to the market on Monday.  


The weekly index for P&S fell by $2/mt to $543/mt cfr Nhava Sheva, while the index for #1 busheling was at $565/mt cfr, down by $3/mt from July 16.


In a silent market, the Davis Index for US-origin HMS 1&2 (80:20) was unchanged at $482.5/mt cfr Nhava Sheva from a day ago. The index was down by $5/mt from July 16. 


In Alang’s shipbreaking market, melting scrap prices rose by Rs2,800/mt from the prior Friday as demand improved. On Friday, deals were heard at Rs36,800/mt ($494/mt) ex-yards, unchanged from a day ago.


In Mumbai, rebar offers were flat at Rs48,100/mt ex-works. Rebar prices rose by Rs600/mt from prior Friday. In Mandi Gobindgarh, ingot traded above Rs45,500-46,600/mt ex-works on Thursday.


Amid improving domestic fundamentals, Indian mills shifted focus from exports to domestic sales this week. Offers were still above $625-630/mt fob for billets. 


Exporters in China were unwilling to participate in negotiations amid rumors of export taxes. Strict production cuts aiming at reducing production by 60mn mt in the second half of 2021 forced Chinese steel mills to shift focus on re-rolling operations. This increased billet imports but weighed down iron ore demand and prices. 


International iron ore Fe 62pc in the spot market dropped to reach $200/mt cfr North China on Friday, dropping around $22/mt in a week. Domestic billet prices rose by CNY20/mt from Thursday to CNY5,200/mt ex-Tangshan inclusive of VAT on Friday. Billet prices rose by CNY40/mt from last Friday. 



The daily Davis Index for containerized shredded settled at $542.16/mt cfr Indian subcontinent, up by $2.04/mt, while the daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $496.75/mt cfr Indian subcontinent, up by $0.53/mt. 

($1=Rs74.59; CNY6.47)


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