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

Indian steel mills continued restocking imported ferrous scrap, aided by a bullish demand and prices for rebar. In the last two days, rebar prices gained Rs300-500/mt with a likelihood of a further rise in the coming days. Trades for all grades of scrap including, shredded, HMS, Busheling, PNS, and Turnings have started picking up.  


In Turkey, the daily Davis Index for Turkish for US-origin HMS 1&2 (80:20) remained unchanged at $290.25/mt cfr on Thursday, with new bookings from the Baltic region. These trades, however, drove US west coast suppliers to raise asking prices for HMS 1&2 (80:20) by $15/mt from the prior week to $315-320/mt cfr Kandla. Buyers in India were not keen on trades at these levels. In the export markets, trades slowed down but offers for billets were unchanged at $450/mt cfr Southeast Asia. 


The Davis Index for containerized shredded on Friday settled at $317.5/mt cfr Nhava Sheva, up by $1.79/mt from Thursday and $7/mt from the prior week, with trades at the index price. Offers for UK-origin shredded were at $318-320/mt cfr Nhava Sheva, with limited buying interest at those levels. Australian and US suppliers were keen on offering more material amid improved demand and support from the Indian finished steel market. Steel mills in Mumbai, Gujarat, Chennai, Punjab, and Vizag have ramped up production. 


The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $305/mt cfr Nhava Sheva, up by $9/mt from the prior week. Several deals for Dubai-origin HMS 1&2 (80:20) were at $300-305/mt cfr Nhava Sheva, up by $5-10/mt than the prior week. Trades for containerized #1 HMS from Dubai were at prices above $310/mt cfr Nhava Sheva on Friday. South African suppliers are facing permit issues and remained away from offering material this week. A few containers for UK-origin HMS 1&2 (80:20) were sold at $295-300/mt cfr Nhava Sheva, while #1 HMS traded at $305-310/mt cfr Nhava Sheva. 


Turning scrap traded in limited volume, but prices increased amid an uptick in HMS prices. The weekly index for Turning scrap was at $285/mt cfr Nhava Sheva, up by $10/mt from last week. Two deals for Turning were at $290/mt cfr Chennai levels. Indian buyers preferred premium grades like busheling and P&S scrap. Busheling traded at $330-335/mt cfr Nhava Sheva against bids of $325-330/mt cfr Nhava Sheva while P&S scrap traded at $315-320/mt cfr Nhava Sheva in thin quantities. 


The market could remain firm for two weeks at a minimum if restocking continues. Traders, however, believe trading could slow in the second week of November due to the Diwali festival. On the commodity market, a jump in Indian metal stocks indicated positive sentiments for the sector. Supply from is expected to tighten in November as December, a usual phenomenon during winter months. Domestic demand in the US market could stay flat to up in November. 



Improved trades and restocking activities resulted in subcontinent indexes moving up further. The Davis Index for containerized shredded, Friday, settled at $315.42/mt cfr India subcontinent, up by $7.24/mt from Thursday. The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $304.23/mt cfr India subcontinent, up by $7.04/mt from Thursday. A rise in container freight rates by $5-7/mt on South Asian routes has pushed up the landed cost of imported scrap.




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