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

Imported scrap prices in India increased in sync with global cues. Mills resumed trades for HMS and Turning, while inquiries for shredded and P&S rose this week. Small mills preferred competitively-priced domestic scrap but if local supplies tighten, they would be forced to buy imports to refill inventories. 


The daily Davis Index for containerized shredded, Friday, settled at $410.71/mt cfr Nhava Sheva, up $3.21/mt. The index rose $8.21/mt from the prior Friday (Feb 5). Few alloy producers raised bids to $405-410/mt cfr Nhava Sheva but suppliers aimed above $415/mt cfr. Active booking is expected once Chinese steel mills turn active post Lunar New Year break and provide better clarity on scrap and steel prices, said importers. 


Shipbreaking scrap in Alang and ingot prices in Mandi Gobindgarh dropped by Rs400-500/mt on Friday for the first time since February 5. Indian steel prices could be pressurized by claims of alleged prices cartelisation by steelmakers. On Friday, builders and construction contractors staged a one-day strike to protest alleged unnatural hike of raw material prices, including steel.  


Dubai-origin HMS #1 and P&S traded in the range of $375-380/mt cfr Nhava Sheva on Friday. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $365/cfr Nhava Sheva, up by $6/mt. Mills might resume trades for imported HMS scrap soon amid limited availability of the domestic scrap and the resulting rise in prices. 


The daily Davis Index for US-origin HMS 1&2 (80:20), Friday, surged by $6.75/mt to $376.75/mt cfr Nhava Sheva. For US-based suppliers #1 HMS deal is viable only above $400/mt cfr Nhava Sheva, while bids targetted below $360-365/mt cfr. 


Trades for grades like busheling and P&S remain halted. The indexes for the grade rose $7/mt to $435/mt and $12/mt to $416/mt cfr Nhava Sheva, respectively, amid high offers. 


The weekly index for Turning scrap increased by $12/mt to $350/mt cfr Nhava Sheva. Sellers refused to offer below $345-350/mt cfr Mundra. Offers for West and East African HMS with CI-GI rebound to $350-355/mt cfr Nhava Sheva. HMS 1&2 (80:20) from Australia and the UK/EU offered at $380-400/mt cfr Nhava Sheva, depending on quality. 


Chinese Fe scrap import appetite up

China could resume purchases of ferrous scrap after New Year holidays in late-February, which could support prices. Before holidays mills were actively looking for ferrous scrap from Singapore, South Korea and the UK after successful delivery of Japanese trial deals. 


Chinese mills are also expected to resume imports of billet from the SE Asia and India, which could further boost appetite for ferrous scrap purchases by induction furnaces in India. 


Following a rise in domestic billet prices, blast furnace mills targeted export offers for billet above $525-530/mt fob India, up $10-15/mt from the prior deals. This has offered strength to SE Asian billet prices with Philippines-based mills expected to be back in the market soon, said a trader. 



The daily Davis Index for containerized shredded, Friday, settled at $406.08/mt cfr India subcontinent, up by $3.57/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $373.72/mt cfr India subcontinent, up by $5.09/mt. 



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