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

Imported ferrous scrap offers to India stayed bullish on global cues. Successive upticks in international ferrous scrap prices forced buyers to resume inquiries despite high offers. The resumption of rebar exports by primary steelmakers boosted sentiments of secondary steel mills seeking billet export orders, especially from China.   


The daily Davis Index for containerized shredded, Thursday, settled at $457.13/mt cfr Nhava Sheva, up by $0.88/mt. Market participants expect trades at higher prices amid rising offers. Shredded from the UK/EU yards offered at $465/mt cfr Nhava Sheva. 


On Thursday, Dubai-origin HMS #1 and P&S offered at $420-430/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, settled unchanged at $419/cfr Nhava Sheva. Some buyers who have their materials arrived at the port were offering the UK origin HMS 1&2 (80:20) at $375-380/mt cfr Nhava Sheva. However, fresh orders are above $410-415/mt cfr Nhava Sheva. 


The daily Davis Index for US-origin HMS 1&2 (80:20), Thursday, up by $0.36/mt to $418.57/mt cfr Nhava Sheva. Offers have gone up by at least 30/mt from a week prior in the fas market yet, Indian mills resisted the price hike.


Offers for West African HMS for 20-21mt loading with CI-GI above $395/mt cfr Nhava Sheva while LMS bundles from the Middle East at $385-390/mt cfr Mundra. 


Shipbreaking scrap prices in Alang, Thursday, rose by Rs600/mt on stable demand and high scrapped vessel prices. The fear of another wave of COVID-19 and related restrictions in major ferrous scrap markets like Maharashtra, Gujarat, Chennai and Punjab dampened sentiment.


Ingot prices in Mandi Gobindgarh remained unchanged on Thursday. The possibility of a strike against rising fuel prices and GST issues slowed trades. Ingot traded at Rs39,700-39,800/mt ex-works Mandi Gobindgarh. 


High futures lift Chinese steel 

Chinese HRC prices are approaching CNY5,000/mt ex-works amid rising futures despite the heavy piled up of inventories at mills. Australian iron ore rebound on Thursday after falling to $172.5/mt cfr China on Wednesday. Domestic billet prices rose to CNY4,270/mt ex-Tangshan including VAT, up CNY40/mt than a day prior. Steel mills withdrew low offers and hiked exports prices for HRC by $8-10/mt.


Amid firm imported scrap prices, billet prices in Southeast Asian countries like Thailand, Vietnam, and China rose by $5-10/mt on Thursday. Billet offers at $585-595/mt cfr Southeast Asia. 



The daily Davis Index for containerized shredded, Thursday, settled at $459.97/mt cfr India subcontinent, up by $0.49/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $423.35/mt cfr India subcontinent, up by $0.52/mt. Collection rates fell amid prolonged winter and lockdowns to control the pandemic in most supplier countries. Containerised freight charges remain elevated keeping the landed cost of ferrous scrap firm in all Asian countries.



Leave a Reply

Your email address will not be published.