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

Indian domestic scrap prices continued to decline on Tuesday as heavy rains in the western coast slowed demand and steel production. The bi-weekly Davis Index for HMS 1&2(80:20) fell by Rs550/mt ($7.40/mt) to settle at Rs24,000/mt del Ahmedabad as mills in Gujarat were shut on flood alert. The index for sponge iron dropped by Rs1250/mt to Rs20,450/mt del Ahmedabad.


In Punjab, the state pollution control board has demanded traders to obtain a one-time authorization from the board in order to import scrap. This may lead to increase in domestic HMS prices in the near term and lead to a shortage. Traders will now have to depend more on local scrap. Markets in Mandi rose on Tuesday after a pause on Monday. The daily Davis Index for HMS 1&2(80:20) rose by Rs200/mt to Rs21,900/mt del Mandi Gobindgarh. The index for sponge iron settled flat at Rs22,000/mt del-mills.


The daily Davis Index HMS 1&2 (80:20) settled flat in Mumbai to Rs23,100/mt and the index for sponge iron declined by Rs400/mt to Rs19,800/mt del Mumbai mills.


Demand for finished steel is yet to pick up in eastern India, hence scrap prices are moving southwards. The index or HMS 1&2 (80:20) fell by Rs1,500/mt to Rs25,000/mt del Durgapur, the index for sponge iron dropped by Rs1,500/mt to settle at Rs19,500/mt del Durgapur.


In the south, sentiments were similar with the index for sponge iron down by Rs500/mt to settle at Rs20,000/mt del Chennai, while the bi-weekly index for HMS 1&2 (80:20) settled flat at Rs23,000/mt del mills.


Traders are expecting scrap prices to remain under pressure till monsoon. An uptick in demand is expected on resumption of major infrastructural projects.



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