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

Indian buyers hoped for a decline in imported ferrous prices following a $15/mt dip in the Turkey market. Sellers, however, were unwilling to negotiate at present bid levels lagging $40-50/mt behind their asking prices. Some traders were hopeful for recovery in demand by the month-end driven by active bulk billet deals in China at prices higher by $20-25/mt from the prior week. 


A monsoon lull, depreciated Indian currency, and uncertainty over a third COVID-19 wave added to the bearish sentiment. Eid holidays next week could keep trading for UAE-origin material paused. 


Indian mills expect prices for shredded to trend down in the coming days following the dip in Turkish bulk. But most sellers in the containers market were unwilling to lower asking rates amid tight scrap supply as well as a shortage of containers. 


The daily Davis Index for containerized shredded on Friday, was unchanged at $537.5/mt cfr Nhava Sheva. The index rose by $4/mt from last Friday on firm prices in other subcontinental markets. Offers were at $540-545/mt cfr Nhava Sheva despite bids of $535/mt cfr Nhava Sheva.


The weekly indexes for P&S and #1 busheling were at $545/mt and $568/mt cfr Nhava Sheva, both up by $4/mt from July 9. Low-volume deals of Turnings scrap and West African HMS were heard at $450-455/mt cfr Nhava Sheva, despite expectations of $420-430/mt cfr from mills. 


Most sellers in the UAE have turned silent ahead of the Eid holidays. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled down by $2/mt at $478/mt cfr Nhava Sheva amid a lack of demand in the Indian market. For UAE-origin #1 HMS, offers were at $485-490/mt cfr Chennai against bids of $450/mt cfr Chennai.


In a silent market, the daily Davis Index for US-origin HMS 1&2 (80:20 declined $1.25/mt to $487.5/mt cfr Nhava Sheva. The index was up by $7.5/mt from July 9. 


In the Alang shipbreaking market, melting scrap prices on Friday rose by Rs300/mt to Rs34,000/mt ex-yards. In Mumbai, rebar prices dropped by Rs400/mt to Rs47,500/mt ex-works. Prices still were higher by around Rs900/mt from last Friday. In Mandi Gobindgarh, ingot prices reached Rs42,500/mt ex-works on overall weak demand.


Active booking for imported billets in China boosted sentiment in India. Offers on Friday neared $710-720/mt cfr China after trades at $705-710/mt cfr. The price gap between China and other buyers in Southeast Asia has widened to $25-35/mt than the previous $5-10/mt. Indian mills seized the export opportunity, offering competitive prices on soft domestic demand. 


International iron ore Fe 62pc were above $222/mt cfr North China and are likely to rise further on further. 


On Friday, Chinese steel futures for rebar and HRC maintained an uptrend instilled by positive sentiment and reduction in bank reserve cut. Domestic billet prices rose by CNY20/mt from a day ago to CNY5,160/mt ex-Tangshan inclusive of VAT. Prices rose by CNY80/mt from last Friday. 



The daily Davis Index for containerized shredded on Friday, settled at $541.69/mt cfr Indian subcontinent, down by $1/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $501.63/mt cfr Indian subcontinent, down by $1.13/mt. International freight rates were largely flat this week. A container shortage continues in the global market.



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