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

Indian buyers were silent for imported ferrous scrap and sought clarity on global trends before booking material. Domestic steel prices continued to drop on weak demand. Most sellers refused the present bid levels, keeping deals limited. A monsoon lull also added to the bearish sentiment in India. 


The Davis Index for containerized shredded, Thursday, rose by $3/mt to settle at $533/mt cfr Nhava Sheva. Offers were above $535-538/mt cfr Nhava Sheva with equivalent price levels finding acceptance in Pakistan. Bids from stainless steelmakers, however, are likely to recover as many are looking to restock for their regular melt requirements. Secondary furnaces were only interested in prices below $520/mt cfr Nhava Sheva amid falling domestic prices and softening export bids.  


The daily Davis Index for US-origin HMS 1&2 (80:20) on Thursday was up by $1.25/mt to $493.75/mt cfr Nhava Sheva. A wide disparity between offers and bids kept trading limited for HMS from the US, Australia, and the UK this week. Most sellers opted to sell in Bangladesh or Pakistan over India. 


For UAE-origin #1 HMS, offers were unchanged at $495-500/mt cfr Chennai. The daily index for UAE-origin HMS 1&2 (80:20) inched up by $1/mt to $474/mt cfr Nhava Sheva. Asking prices were unchanged at $475-480/mt cfr Mundra. Sellers were unwilling to match bids of $455/mt cfr Nhava Sheva from secondary furnaces. 


In Alang, melting scrap prices on Thursday declined by another Rs300/mt to Rs33,700/mt ex-yards. In Mumbai, weak construction and retail demand have kept rebar prices unchanged for almost a week at around Rs45,800/mt ex-works. In Mandi Gobindgarh, prices for ingot were stable at Rs42,400/mt ex-works.


There was a steeper drop in steel and domestic scrap prices in regions where ferrous scrap consumption is high, including the north and west coast amid logistic challenges. Steel and domestic scrap prices in regions consuming iron ore and sponge iron showed a gradual drop. 

In China, domestic steel prices varied in the range CNY50-100/mt. Steel futures increased, but iron ore prices declined. Billet prices trended sideways at $4,910/mt ex Tangshan, inclusive of VAT. With China set to announce a steel policy, the market is watchful for new updates. On Thursday, imported iron ore prices for ferrous content 62pc were above $219/mt cfr North China. 


In the export market, a few induction furnaces in Gujarat reportedly sold billets around $590-595/mt fob India. Primary mills continued to target $600-605/mt fob India, or $665-675/mt cfr China and Southeast Asia. Iranian mills were largely silent in the export billet market is modest due to low demand in Asia. Iranian billet offers heard dropped by $10/mt to $605-615/mt fob.



On Thursday, the daily Davis Index for containerized shredded, settled at $538.01/mt cfr Indian subcontinent, up by $3.01/mt on trades reported at increased prices in Pakistan; while that for containerized US-origin HMS 1&2 (80:20) settled at $500.24/mt cfr Indian subcontinent, up by $1.74/mt from Wednesday.



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