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

Indian imported ferrous scrap demand is improving amid a rise in domestic steel prices. Many induction furnaces kept their bids low amid subdued sales of finished steel and non-viability to accept higher offers. 


As the Chinese market is under pressure due to heavy winters, some mills decided to wait for clarity on Wednesday and postponed their ferrous scrap trades. Offers for high grades scrap including shredded, remained on an uptrend, while HMS prices were ‘flat to down’ amid slow demand.  


The weekly Davis Index for cast iron, rotors, and drums on Wednesday, settled at $454/mt cfr Nhava Sheva, down by $3/mt. Offers were scarce or at unviable levels, which impacted trades. Buyers were unwilling to raise bids above $430-435/mt cfr Nhava Sheva.


The daily Davis Index for containerized shredded Wednesday settled at $463.75/mt cfr Nhava Sheva, up $3.75/mt from Tuesday. Trades remain slow on firm offers from traders and recyclers who were in the market while most suppliers are off for the winter break. Few offers for shredded from the US and Europe/UK rose above $470-475/mt cfr Nhava Sheva.  


The daily Index for UAE-origin HMS 1&2 (80:20) Wednesday dropped to $440/mt cfr Nhava Sheva, by $4/mt. Dubai-based suppliers offered #1 HMS at $435-445/mt cfr Nhava Sheva, but buyers bid $425-430/mt cfr Nhava Sheva.  


A few traders lowered offers for HMS 1&2 (80:20) to $415-420/mt cfr Nhava Sheva following softening secondary domestic market in India. Large steel mills have a positive outlook on the price trend.   

The daily Davis Index for US-origin HMS 1&2 (80:20) settled at $443.21/mt cfr Nhava Sheva, down by $3.29/mt. Offers were limited while bids for the grade lag at $415-425/mt cfr Nhava Sheva on Wednesday. Bids for #1 HMS from the US were upto $425-430/mt cfr Nhava Sheva from Mumbai-based buyers. Both suppliers and buyers have turned silent and could be away from the market until January 4.  


In the domestic market billet and domestic scrap lost steam with prices declining by Rs300-400/mt on Wednesday. In Mandi, ingot traded at Rs40,300/mt ex-works. HMS 1&2 (80:20) prices on Tuesday reported a rise of Rs100/mt to Rs30,000/mt delivered Mumbai mill.  


In Turkey, bulk HMS 1&2 (80:20) prices are expected to slide amid rising resistance from mills to accept higher offers. A few Turkish mills lowered domestic scrap purchase prices by TRY25-55/mt ($4-8/mt) amid the appreciation of local currency lira. 

Indian mills continue to target above $585-590/mt fob India for billet exports, however, it could come under pressure in the coming days. In China, prices for Q235 150mm square billets, Wednesday were stable at CNY3,730/mt ex-works Tangshan including the 13pc VAT from a day prior. HRC export dropped from its recent high by a total $15-20/mt amid a weak futures market.



The Davis Index for containerized shredded, Wednesday, settled at $464.14/mt cfr India subcontinent, up by $3.45/mt from Tuesday. The Davis Index for containerized US-origin HMS 1&2 (80:20) dropped to $444.78/mt cfr India subcontinent, by $2.67/mt from Tuesday. Major shipping lines are off on New Year holidays.  




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