Mettalex to List New Ferrous Scrap Contracts by End-May

SEATTLE (Scrap Monster): Davis Index- a provider of price benchmarks for base metals, scrap metal, steel and secondary alloys that are not listed on exchanges, has announced its decision to launch futures contracts for ferrous scrap. The contracts will be listed on Mettalex by month-end.

Davis Index plans to launch exchange-settled daily contracts for bulk exports of ferrous scrap to Turkey and for containerized shredded scrap exports to India. The launch is scheduled for 31st May, 2021, said Davis Index press release. The settlement of the Turkish contracts will be based on the Davis Index US-origin HMS 1/2 (80:20) bulk cfr Turkey index. Meantime, the Davis Index containerized shredded cfr Nhava Sheva index will form the basis of settlement of Indian contracts.

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Most of the ferrous scrap that reaches Turkey are in the form of bulk vessel shipments, whereas containerized scrap accounts for majority of the ferrous scrap imports by India.

Davis Index aims to provide price benchmarks on the Mettalex platform, thereby offering precise hedging instruments for the manufacturing, demolition and metal producing sectors, said Sean Davidson, CEO, Davis Index.