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

Imported ferrous scrap offers in India registered an uptick of $2-3/mt on tight supply and low container availability. Driven by positive sentiment, demand is also likely to strengthen in the coming days. An uptick in East Asian containers offers from the US, especially in Taiwan and improving Asian billet prices added to positive sentiments on Monday.   


The market was upbeat on the back of primary steel producers announcing price hikes for September deliveries. In the coming days secondary steelmakers could also follow suit. The news also supported sentiment for billet and HRC exports. Earlier, exports had taken a backseat as bids were below sellers’ expectations. Ferrous scrap importers thus expect restocking to resume. 


The daily Davis Index for containerized shredded, Monday, settled at $522/mt cfr Nhava Sheva, up by $0.75/mt from Friday. Interest for shredded remained weak. Besides a few alloy makers, buyers stayed away from booking the grade. Traders, however, kept offers firm in India compared to the other two sub-continental markets on low inventories at Indian mills.

The Indian rupee was Rs73 against $1, from Rs74 levels in late August. The appreciation in Indian currency could also support overseas purchases. 

The daily Davis Index for UAE-origin containerized HMS 1&2 (80:20) inched up by $2/mt to $472/mt cfr Nhava Sheva. Industrial activities are expected to rise for the remaining month spurring hopes of active scrap trading. The market could again slow down in October-November during Navratri and Diwali festivities. 


For UAE-origin #1 HMS, offers remained above $475-480/mt cfr Nhava Sheva with a few deals. 


The daily Davis Index for US-origin containerized HMS 1&2 (80:20) was unchanged at $476.25/mt cfr Nhava Sheva. High containerized freight rates and tight vessel space pushed sellers to kept offers firm.  

Demand in the Alang shipbreaking market was low but asking prices for melting scrap remained unchanged at Rs35,700/mt ex-yards. In Mumbai, the asking prices for rebar dropped by Rs300/mt to around Rs47,700/mt ex-works on slow sales. Rebar prices are lower by Rs1,500/mt from their peak. In Mandi Gobindgarh, ingots traded at Rs44,500/mt ex-works Monday, down Rs100/mt from Friday. 


International iron ore futures dropped by over 6-7pc on Monday. For Fe 62pc daily spot prices were below $135/dmt cfr North China on Monday from above $145/mt on Friday. 


Domestic steel prices rose CNY30-40/mt as steel inventories decreased. With expectations for a short supply of steel due to production cuts, prices found support. Domestic billet prices in China increased CNY20/mt from Friday to CNY5,100/mt ($790/mt) ex-Tangshan inclusive of VAT. Offers for imported billet in China and Taiwan were above $690-700/mt cfr. From India, billet export offers were above $610/mt fob basis.


The daily Davis Index for containerized shredded on Monday, settled at $525.75/mt cfr Indian subcontinent, up by $1.25/mt; while that for containerized US-origin HMS 1&2 (80:20), the index settled at $484.71/mt cfr Indian subcontinent, up by $1.21/mt.


According to freight data with Davis Index, normalized weekly container freight rates from the US East Coast’s New York port to South Asian routes remained unchanged. On the Bangladesh, India and, Pakistan routes, freights were at $90.3/mt, $47/mt, and $51.74/mt, respectively. 


From Los Angeles on the West Coast, freights rose by $1.6/mt to $193.38/mt to Bangladesh, $120.56/mt to India, and $155.98/mt to Pakistan. 


($1=Rs73.09; CNY6.46)

Leave a Reply

Your email address will not be published.