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

Large-scale mills continued to book imported ferrous scrap in India as they received more export orders. Small and medium-scale mills, however, were cautious amid weak demand in the domestic market. A drop in Chinese steel prices also weakened sentiment in the market and some mills expect ferrous prices in the global.


The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, was at $495/mt cfr Nhava Sheva, up by $2/mt. Offer levels for the grade have neared record prices seen in 2008. On a weekly basis, the index rose $37/mt. Offers for HMS #1 from Dubai-origin spiked to $500-510/mt cfr Nhava Sheva on tight supply and strong global cues. Some mills have already bought UAE-origin #1 HMS above $500-505/mt cfr Chennai. 


Offers for containerized shredded remained firm after scaling up by $30-35/mt. The Davis Index for containerized shredded, Friday, settled at $518.75/mt cfr Nhava Sheva, down by $0.18/mt. From the prior Friday, the index rose by $32.5/mt. Mills, however, resisted shredded scrap bookings and turned cautious to ensure if these levels could sustain longer. 


In the bulk market, offers for HMS 1&2 (80:20) were above $540/mt cfr Kandla. Amid a sharp rise in containerised prices, mills on India’s East coast could opt for bulk bookings in the coming days.


The index for US-origin HMS 1&2 (80:20), Friday, settled at $500/mt cfr Nhava Sheva, inched down by $0.71/mt from Thursday. The index jumped by a record $42.5/mt amid non-availability of containers and severe logistic challenges. Offers for the US and UK-origin HMS 1&2 (80:20) rose driven by strong domestic demand forcing exporters to focus on domestic sales. Buyers turned cautious and resisted high prices for long transit scrap. UK-sellers offered HMS in containers at $490/mt cfr Nhava Sheva.


For higher grade scrap, there were hardly any buyers in the market. Offers for busheling in containers were in the range of $560/mt cfr Vizag. Mills stayed away from booking containerized P&S and #1 busheling. The indexes for P&S and #1 busheling rose to $531/mt and $551/mt cfr Nhava Sheva, respectively, up by $33/mt and $32/mt from the last week.


Offers for Turning scrap jumped by $35-40/mt to $475-480/mt cfr Chennai from a week ago, pushing the index for the grade to $469/mt cfr Nhava Sheva on Friday. For West African HMS 20-21mt loading, trades in thin volumes heard at $465-475/mt cfr Goa and Chennai.


In China, for 62pc Fe, spot iron ore prices tumbled below $210/mt cfr China from over $233/mt cfr China amid a sell-off in the futures markets. Billet prices dropped by CNY150/mt to CNY5,670/mt ($881/mt) ex-Tangshan on Friday. 


Indian primary mills are eyeing billet exports above $700/mt fob India. On Friday, Chinese rebar and HRC prices dropped to CNY6,100/mt and CNY6,500/mt ex-works, down CNY192/mt and CNY236/mt in a single day. Ferrous scrap prices are expected to remain stable with limited room on either side, said a trader. 



The daily Davis Index for containerized shredded, Friday, settled at $521.61/mt cfr Indian subcontinent, down by $2.18/mt; while that for containerized US-origin HMS 1&2 (80:20) rose to $504.56/mt cfr Indian subcontinent, down by $0.44/mt from Thursday.



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