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

Imported ferrous scrap trades for high grades in India remained sluggish amid a wide disparity between offers and bids. Sellers refused to lower offers citing elevated freight rates and steady rebar demand. However, easing scrap supplies globally lowered bids. Some buyers withdrew bids to ensure prices have bottomed. 


Demand for containerised HMS scrap remained stable with deals heard from the UAE and African origins at stable prices. The daily Davis Index for containerized shredded Friday remained unchanged at $427.5/mt cfr Nhava Sheva. Priced dropped by $6.25/mt from the prior week. 


Most yards and traders kept asking rates $5-10/mt higher than the index price, while buyers resisted high offers after a deal for 3,000mt shredded at $435-438/mt cfr Mundra in the prior week.


In Turkey, the next round of bulk trades is expected in the range of $420-425/mt cfr Turkey. Mills, however, await clarification on the Chinese export rebate rate to assess the market. Bids in the subcontinent have dropped on hopes of another $10-15/mt downside. 


The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $393/cfr Nhava Sheva, down by $2/mt. From a week ago, the index dropped by $6/mt. Buying interest was at $385-390/mt for the grade and most furnaces in North and West India continued to resist imported offers and opted for domestic supplies. 


Minor trades for Dubai-origin HMS #1 and P&S reported in the range $400-405/mt cfr Nhava Sheva.


The daily index for US-origin HMS 1&2 (80:20), Friday, was at $407.5/mt cfr Nhava Sheva, down by $2.5/mt from a day prior and down $7.5/mt from a week prior. Offers for HMS 1&2 (80:20) from the UK and Australia were at $400-410/mt cfr Nhava Sheva with buyers’ expectation $10-15/mt below offers. 


Inquiries for turning scrap were in the range of $370-375/mt cfr Nhava Sheva, down $10-15/mt from a week prior. Thin trades for West African HMS for 20-21mt loading with CI-GI were at $370-375/mt cfr Goa.


Trading for containerized P&S and #1 busheling remained halted in India. With a decline in global offers, the weekly indexes for P&S and #1 busheling settled at $440/mt and $453/mt cfr Nhava Sheva, down by $6/mt from a week ago.


With construction activities picking up, rebar demand has been strong in the country. Shipbreaking melting scrap prices in Alang, Friday remained largely stable at Rs30,100-30,300/mt ex-Alang. The ongoing strike against GST compliance challenges in Mandi Gobindgarh had limited impact on trades. 


On Friday, Chinese finished steel and raw material futures reversed the trend by dropping over 4-5pc. Spot imported iron ore 62pc ferrous content is expected to drop again from $165/mt cfr North China on Thursday. Domestic billet prices in the retail market, however, increased to CNY4,490/mt ex-Tangshan, up CNY20/mt, including VAT hitting a nine-year high. A lack of clarity on the export rebate rate in China has led to some price volatility. According to a recent CISA’s meeting, it is expected that the export tax rebate on HRC could drop to 9pc from 13pc. 



On Friday, the daily Davis Index for containerized shredded dropped to $429.16/mt cfr Indian subcontinent, up by $0.12/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $412.49/mt cfr Indian subcontinent, down $2.66/mt from a day ago. Buyers are wary of a sharp rise in freight rates due to the shortage of containers and increased transit time. The regularisation of container issues could extend over H1 2021, fear importers. 



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