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

Indian imported scrap trades were slow amid a wide gap between buyers’ expectations and suppliers’ quotes. The secondary steel sector is still struggling with weak rebar demand from the real estate and construction sectors. Most mills preferred domestic scrap to control costs, however, towards the end of the week more and more indications of a drop in the prices following global cues turned buyers cautious.  


The daily Davis Index for containerized shredded settled at $305.63/mt cfr Nhava Sheva flat from a week earlier in absence of trades. On Friday, offers were $5/mt higher than the index price. A wide gap of around $10/mt between offers and bids resulted in a stalemate. Only alloy makers were in a position to book shredded scrap in India while most other buyers prefer domestic scrap over imported. UK yards were unwilling to offer below $310/mt cfr Nhava Sheva despite weak global cues.  


Indian imported HMS scrap prices were mixed while offers reported a jump of $5-7/mt from a week earlier. Though most Indian steel mills were targeting lower ferrous scrap prices, suppliers revoked low offers anticipating recovery in demand and shortage of domestic scrap. Enquiries gained momentum as China returned with higher futures from the Golden week holidays. Market participants still await more clarity on global price direction.  


The Davis Index for HMS 1&2 (80:20) of UAE-origin, Friday settled at $287/mt cfr Nhava Sheva, up $3/mt from a week prior. Deals for Dubai-origin HMS 1&2 (80:20) were at $285-290/mt cfr Nhava Sheva with some offers heard at $295/mt cfr Nhava Sheva on Friday. Offers for containerized #1 HMS from Dubai, however, were above $300-305/mt cfr Nhava Sheva against bid levels of upto $290/mt cfr Nhava Sheva. The gap between Dubai HMS and imported shredded has narrowed sharply with shredded prices failing to rise.  


A trader concluded a deal for 30,000mt Indian blast furnace billets at $455/mt cfr Philippines, higher than what was expected earlier. The deal kindled hopes of better prices in the export market. Steel export prices could remain firm for another 10-15 days before the market corrects towards year-end, said traders. 


Iranian billet exporters traded at $408-410/mt fob Iran offering support to international billet prices. 


In the bulk market, no trade for US-origin HMS 1&2 (80:20) materialised as buyers refused to bid above $295/mt cfr Kandla against firm offers of $300-305/mt cfr Kandla on Friday. Non-recovery of rebar sales and billet exports has kept buyers silent in the domestic market.  


Turning scrap traded this week in limited volumes amid an uptick in HMS prices. The weekly index for Turning scrap was at $269/mt cfr Nhava Sheva, up $1/mt from last week. A trader sold Turning at $265-270/mt cfr Chennai against a few bids for Turning scrap reported at $260/mt cfr Mundra.  


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