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

Prices for all imported scrap grades in India, barring UAE-origin HMS, declined on Friday. UAE-origin HMS 1&2 (80:20) gained $10-15/mt in the latter part of the week. Domestic steel prices were mixed as mills focused on sales of finished steel and accessed the impact of the recent duty cut on ferrous scrap and steel imports. Small mills preferred competitively priced domestic scrap.  


The daily Davis Index for containerized shredded, Friday, settled at $402.5/mt cfr Nhava Sheva, flat from Thursday. Prices dropped by $20/mt from the prior Friday. Secondary steelmakers were unwilling to bid above $390/mt cfr Nhava Sheva for shredded scrap. Steel alloy producers who were willing to accept present levels to maintain inventories.  


Offers for UAE-origin HMS rose. HMS from Dubai was a preferred option for most buyers on shorter delivery times and competitive prices in an unceratain market. Even Bangladeshi mills showed willingness to secure UAE materials amid tightened supply of lower-priced scrap.  


Dubai-origin HMS #1 traded in the range of $350-360/mt cfr Nhava Sheva. The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $346/cfr Nhava Sheva, up $1/mt from a day earlier while down by $9/mt from January 29. As per quality and payment terms, trades were reported in the varied range of $325-360/mt cfr Nhava Sheva. 


The daily Davis Index for US-origin HMS 1&2 (80:20), Friday, dropped by $1.25/mt to $360/mt cfr Nhava Sheva. The same was down by $10/mt from a week ago. Offers for #1 HMS were at $370-375/mt cfr Nhava Sheva, with a decline in fas levels in the US by $30/mt over the week.  Domestic HMS 1&2 (80:20) was in the range of Rs26,000-26,500/mt delivered Mumbai mill and remained preferred over imported material.  


Trades for grades like busheling and P&S are still slow with indexes slipping by $2/mt to $428/mt and $4/mt to $404/mt cfr Nhava Sheva, respectively.  


The weekly index for Turning scrap dropped by $12/mt to $338/mt cfr Nhava Sheva. Sellers refused to accept bids for the grade from mills of $290-300/mt cfr Mundra. West and East African HMS with CI-GI traded at $320-330/mt cfr Nhava Sheva this week. HMS 1&2 (80:20) from Australia and the UK/EU was offered $360-370/mt cfr Nhava Sheva, depending on quality.  


Billet prices in the export prices are under pressure and mills offered material at $525-530/mt fob India, or equivalent to $545-550/mt cfr SE Asia, down by $10-15/mt amid a decline in the domestic prices. Iranian billet prices also dropped by an equal amount to $520-530/mt fob Iran, weighing down sentiment in SE Asia.  


In China, steel prices were mixed ahead of the spring festival. Market participants are uncertain about the price direction after the Chinese New Year holidays. Prices for Q235 150mm square billets prices in China were unchanged at CNY3,850/mt ex-works Tangshan, including 13pc VAT. 

In the last two days, spot imported prices for iron ore Fe 62pc content rose by over $8-10/mt to $158-160/mt cfr China. Amid rising futures and traders taking position ahead of approaching holidays, prices are likely to increase further.  



The daily Davis Index for containerized shredded, Friday, settled at $394.25/mt cfr India subcontinent, down by $0.28/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $361.8/mt cfr India subcontinent, down by $0.57/mt. Demand is likely to pick-up next week and strengthen prices. Improved container availability kept freight rates unchanged this week.




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