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

As the markets resume work after the new year holidays, there were very limited offers for imported ferrous scrap for Indian buyers on Monday. Most suppliers and traders are yet to return. Transactions are expected to resume in the coming days aided by rising steel prices and improved demand. The market sentiment turned positive after India approved two COVID-19 vaccines and the INR appreciated to Rs73 from Rs73.65 on Dec 30. The appreciation could also support imports. 


The Davis Index for containerized shredded, Monday, settled at $466.25/mt cfr Nhava Sheva, up by $1.25/mt from Dec 31. Offers were at $470/mt cfr Nhava Sheva before the market closed for the holidays. Optimism in the January market could lead to a rise of $15-20/mt in the coming days, believe most traders. Container freight rates are likely to stay firm as container shortage persists. 


In the absence of fresh offers, the Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $443/mt cfr Nhava Sheva, unchanged from Dec 31. Suppliers from Dubai offered #1 HMS at $445-450/mt cfr Nhava Sheva on Monday, with buyers interested at $425-430/mt cfr Nhava Sheva. 


Many primary and secondary rebar makers have raised finished steel prices by Rs1,000-2,500/mt ex-works for January sales. Primary steel mills paved the way for the secondary mills, who have started following suit from Monday. This has supported the sentiment for imported scrap.  


The Davis Index for US-origin HMS 1&2 (80:20) settled at $445.75/mt cfr Nhava Sheva, up by $0.75/mt. Late last week, most US suppliers lifted offers by $15-20/mt on a fob and fas basis, which would impact prices for trades on a cfr India basis. Suppliers were unwilling for trades at the current bid levels of $425-435/mt cfr, as they believe mills to resort to active restocking in the coming days. 

In the domestic market, Mandi-based ingot makers could increase selling prices by Rs500-700/mt in the coming days. Prices on Monday were at Rs41,300/mt ex-works Mandi. HMS 1&2 (80:20) prices were at Rs30,000/mt ($411/mt) delivered Mumbai mill.


Imported scrap demand could find support from the strengthening international billet market. Iranian billet prices were at $555/mt fob Iran, driving Indian mills to target above $580-585/mt fob India. On Monday, Q235 150mm square billets prices in China were at CNY3,790/mt ex-works Tangshan, including the 13pc VAT. 



Major shipping lines had paused loading activities during the New Year weekend. The Davis Index for containerized shredded, Monday, settled at $466.29/mt cfr India subcontinent, up by $1.24/mt from Thursday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $447.38/mt cfr India subcontinent, up by $0.96/mt from Dec 31. 



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