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

Bangladesh mills resumed containerized trades as demand started showing signs of recovery. A few buyers looked to stock-up before prices increase in future. Dipping inventories also encouraged buyers to restock.  


In the bulk market, West Coast US-origin HMS 1&2 (80:20) offers jumped by around $15/mt over this week in the range of $325-330/mt cfr Chattogram. Bangladeshi mills stayed away from the bulk market and opting for containers. Japanese bulk offers have jumped by $10/mt but Japanese suppliers are least interested to sell to Bangladesh at this moment.  


The weekly Davis Index for containerized shredded, Friday, settled at $325.57/mt cfr Chattogram, up by $1.28/mt. Prices have recorded the lowest rise in the subcontinent as buyers were resisting high offers on weaker domestic support. Limited containers of shredded from Europe, Australia, and New Zealand traded at $325/mt cfr Chattogram. On Friday, offers for containerized shredded from the UK were heard at $330-335/mt cfr Chattogram.  


The weekly Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $316/mt cfr Chattogram, up by $3.84/mt from the prior week. Some trades for Australia, UK, and US-origin HMS scrap were at $315-320/mt cfr Chattogram, with offers above $320/mt cfr Chattogram following strong global cues. UK/EU-origin HMS 1&2 (80:20) rose by $2/mt to $310/mt cfr Chattogram from the prior week. A few trades for HMS 1&2 (90:10) from the UK origin reported at $315-320/mt cfr Chattogram on Friday despite strong resistance from a few buyers.  


The weekly index for Latin America-origin HMS 1&2 (80:20) settled at $311/mt cfr Chattogram, up by $4/mt. Offers were scarce and most Brazilian traders sought $310-315/mt cfr Chattogram for HMS 1&2 (80:20) against lower bids on stronger domestic markets. Trades were reported at $313-315/mt cfr Chattogram for Latin American HMS #1 over this week.  

The weekly Davis Index for busheling and PNS settled at $346/mt and $323/mt cfr Chattogram, up by $6/mt. Brazilian P&S scrap containers traded at $320-325/mt cfr Chattogram while offers for the grade from UK/EU were at $325/mt cfr Chattogram on Friday.  


Finished, semi-finished steel

Domestic steel demand in Bangladesh is yet to return to the pre-COVID-19 levels though end-user demand may rise in the coming days as construction activities are picking up.

The weekly Davis Index for domestic billet Friday settled at BDT40,000/mt ex-works Chattogram, down by BDT250/mt, with trades at the index price. Major steelmakers in Chattogram are offering billets in the range of BDT41,000-41,500/mt ex-works Chattogram following high imported scrap prices.  

The weekly Davis Index for rebar from medium steelmakers settled at BDT49,500/mt ex-works, down by BDT250/mt, inclusive of VAT. Large steel producers like BSRM and AKS are offering rebar at BDT56,000/mt and BDT54,500/mt ex-works, respectively.


Domestic and shipbreaking scrap

Domestic shipbreaking scrap equivalent to P&S traded at BDT30,500-31,000/mt ex-yard Chattogram, marginally down by BDT500/mt. HMS 1&2 (80:20) was priced at BDT28,500-29,000/mt ex-yard Chattogram, unchanged from late last week. Dhaka-based finished steel producers sold rebars at BDT48,250/mt ex-works, down BDT250/mt from the prior week. Most mills struggled to stay profitable and may curtail production – some have even cancelled discounts on rebar and billets. Following high imported scrap prices, most mills are now offering high to offset higher input cost.  





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