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

Indian importers continued trades for HMS, while Pakistani and Bangladeshi buyers were silent amid Muharram holidays. Sentiment is positive in India with a likelihood of another round of finished steel price hikes for September deliveries.


The weekly Davis Index for cast iron, rotors, and drums rose $7/mt from Aug 11 to settle at $510/mt cfr Nhava Sheva on Wednesday. Offers were very limited to nil as buyers opted domestic supplies over imported. Sellers expectations were firm at $520/mt cfr Nhava Sheva but buyers targeted $505-510/mt cfr Nhava Sheva. Easing supplies have lowered prices in the exporting countries which could also pressure cast iron rotors offers to India. Buyers are hoping for a slight drop in offers this week.  


In the domestic market, cast iron toka scrap offers, Wednesday, recovered by Rs200/mt from the prior week to Rs36,000/mt delivered Mandi Gobindgarh, while imported cast scrap offered at Rs37,000/mt ($498/mt) delivered mills.


The daily Davis Index for containerized shredded, Wednesday, was unchanged at $532.5/mt cfr Nhava Sheva. Buyers were reluctant to buy large volumes for any grade priced above $500/mt cfr Nhava Sheva. Most traders anticipate revival in demand on limited ferrous scrap inventories with steel producers.  


Amid steady demand for the HMS scrap available on prompt arrivals, trades for UAE origin HMS were active in India. The daily Davis Index for UAE-origin HMS 1&2 (80:20) rose $2/mt to $480/mt cfr Nhava Sheva on Wednesday. UAE-origin #1 HMS, Wednesday, jumped $5/mt with offers at $490-495/mt cfr Nhava Sheva on tight availability and stable rebar demand.


In Mumbai, healthy demand for rebar have supported prices for over a week. Domestic HMS 1&2 (80:20) firm at Rs36,000/mt ($484/mt) delivered Mumbai. Imported HMS 1&2 (80:20) offered at $480/mt cfr Nhava Sheva, which is around $500-505/mt on landed basis after port handling and local transportation charges. 


For billet exports bids remained less attractive but mills found it profitable with around $120/mt gap between landed HMS and billet export offers of around $615-620/mt on fob basis.  


Domestic melting scrap prices in Alang dropped, Wednesday, as yards offloaded stock piled up during the almost a 20-day transporters’ strike. The strike was ended on Tuesday. Melting scrap traded at Rs36,400/mt ex-Alang, down Rs600/mt. In Mumbai, the asking prices for rebar rose to Rs50,700/mt ex-works.  


In Mandi Gobindgarh, ingots traded at Rs46,000/mt ex-works, but rebar demand was less encouraging in North India. In Chennai mills preferred domestic scrap and trades for imported scrap were largely suspended.  


In China, talks of more export taxes weighed on market sentiment. Port operations are delayed due to enhanced quarantine controls at various sites and transportation facilities. Spot steel prices on Wednesday dropped by CNY50-80/mt.  


The daily domestic billet price in China, Wednesday, tumbled by CNY60/mt to CNY4,980/mt ($768/mt) ex-Tangshan inclusive of VAT. Bids for imported billet thus dropped to $670-680/mt cfr China, down $10-15/mt on Wednesday.


International daily iron ore Fe 62pc price index declined by $3/dmt to $159.5/dmt cfr North China on Tuesday. Following decline in iron ore futures, spot rates could drop further.  



The daily Davis Index for containerized shredded on Tuesday, settled at $537.5/mt cfr Indian subcontinent, up by $0.75/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $491.75/mt cfr Indian subcontinent, up by $1.28/mt.

($1=Rs74.43; CNY6.48)


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