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

Indian imported ferrous scrap buyers continued to stay away from purchases. The landed cost of imported material on a delivered mill basis is higher by $30/mt than domestic scrap. But expectations of recovery in steel demand could support trading once the monsoon nears completion. India could still stay a low on the priority list for sellers who believe Pakistan and Bangladeshi could offer better prices. 


The daily Davis Index for containerized shredded on Monday settled unchanged at $537.5/mt cfr Nhava Sheva from Friday. Deals for shredded were very low amid a disparity between offers and bids. Bids from secondary producers for shredded were heard at $525-530/mt cfr Nhava Sheva. Availability for higher grades, including shredded, remains tight which has kept the gap between HMS and prime grades broad. 


The daily Davis Index for UAE-origin HMS 1&2 (80:20) inched up by $1/mt to $473/mt cfr Nhava Sheva. Despite the extension on temporary suspension of exports of steel scrap from the UAE until December 14, traders state it is unlikely to create any supply gap or price impact in the short run. 

In Alang’s shipbreaking market, melting scrap prices rose by Rs200/mt from Friday as demand improved. On Monday, deals were heard at Rs36,900/mt ex-yards.


In Mumbai, rebar offers rose by Rs200/mt in the afternoon reaching Rs48,300/mt ex-works on Monday. In Mandi Gobindgarh, ingot traded flat at Rs45,500-46,600/mt ex-works.

Amid improving domestic fundamentals, Indian mills shifted focus from exports to domestic sales this week. Offers for billets from India were still above $625-630/mt fob. Turkish rebar prices were competitive in the Southeast Asian markets at $725-730/mt fob. Yet demand remained slow as many countries have imposed stringent restrictions to fight COVID-19 resurgence. 


International iron ore Fe 62pc in the spot market dropped to reach $200/mt cfr North China on Friday. Meanwhile, domestic billet prices Monday rose by CNY40/mt from Friday to CNY5,240/mt ex-Tangshan inclusive of VAT. HRC futures were at CNY6,000/mt again on Monday and spot trades are also likely to pick up this week. Chinese domestic steel prices rose by CNY800-1,000/mt ($123-154/mt) within the last six weeks amid strict production control measures. 



The daily Davis Index for containerized shredded settled at $542.51/mt cfr Indian subcontinent, up by $0.36/mt, while the daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $496.70/mt cfr Indian subcontinent, inch down by $0.05/mt. 

On the New York to South Asia route, the normalized container freights rates were unchanged from a week ago at around $84/mt, $52/mt, and $47/mt to Bangladesh, Pakistan, and India, respectively, as per Davis Index data.

($1=Rs74.43; CNY6.47)


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