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

Bangladeshi steel mills continued buying imported scrap in containers but in very limited quantities this week. Most mills either have enough inventories to remain operational in low steel demand scenario or prefer to book low-priced domestic scrap from the shipbreaking market. After more than a weeks break, ship recyclers in Bangladesh finally accepted higher offers for scrapped ships. 


In the bulk market, a couple of cargoes of shredded grade equivalent were offered at $315/mt cfr Chattogram levels. However, after booking almost three bulks in the prior week, enquiries slowed this week. Most buyers are waiting for a correction in the prices to book more cargoes. Scrap prices have risen to unviable levels for most mills in Bangladesh.  


Japanese scrap supplies are shut for Obon holidays from Thursday. Offers for shindachi scrap were heard at $310-315/mt cfr Chattogram in small bulk cargoes, up $10/mt from the prior levels. 


The Davis Index for containerized shredded, Friday, settled at $323.25/mt cfr Chattogram, up by $1.42/mt from Thursday and $7.18/mt from the prior week amid high offers despite slow trades. On Friday, offers for containerized shredded from the UK were heard at $325-330/mt cfr Chattogram. Most Dhaka-based mills are reluctant to book material at these levels and prefer to import sponge iron from India at $290/mt cfr Chattogram. Sponge iron prices, however, rose by $5-10/mt from the prior week. 


Few deals for Australia and New Zealand-origin shredded were heard at $315-320/mt cfr Chattogram, though supply remained tight, barring high offers of above $320/mt cfr Chattogram. 

The index for US-origin HMS 1&2 (80:20) settled at $308.21/mt cfr Chattogram, up by $2.14/mt from Thursday and up by $5.20/mt from a week ago, with trades at $308-310/mt cfr Chattogram.

The Davis Index for Latin American HMS 1&2 (80:20) settled at $304.93/mt cfr Chattogram, up by $2.43/mt from Thursday and by $7.43/mt from the prior Friday. Offers for #1 HMS from Brazil and Chile were at $305-310/mt cfr Chattogram with bids still at $300/mt cfr Chattogram. 

The Davis Index for Australian HMS 1&2 (80:20) settled at $302/mt cfr Chattogram, up by $4/mt from the prior week. A few containers of #1 HMS from South America and Brazil traded at $305/mt cfr Chattogram.

The Davis Index for busheling settled at $335/mt cfr Chattogram, up by $5/mt from the prior week. P&S from South America and Australia traded at $315-320/mt cfr Chattogram. The weekly index for the grade settled at $318/mt cfr, up by $3/mt. 


Finished and semi-finished steel

Bangladeshi domestic steel prices rose in line with higher input costs. Prices of imported scrap and scrapped ships increased during the week on global cues.  

The weekly index for domestic billet settled at BDT39,500/mt ($463.69/mt), up BDT500/mt from the prior Friday ex-works Chattogram. Trades have picked up as the impact of monsoon is expected to subside in the coming days. 

The demand from infrastructure projects like Padma bridge and few other government-funded projects is expected to aid steelmakers but steady steel demand is less likely to return before October. 


Major steelmakers in Chattogram lifted their rebar offers despite limited trades on bullish indications from the global markets. Rebar was offered at BDT57,000-58,000/mt ex-Chattogram. Sales by large mills remain relatively better compared to small steelmakers. 

The weekly Davis Index for rebar from medium steelmakers settled at BDT53,500/mt ex-works, up BDT500/mt from the prior week, inclusive of VAT. Rebar by small-scale producers was offered at BDT50,500-51,000/mt ex-works, up by BDT500/mt from the prior week.


Domestic and shipbreaking scrap

The Davis Index for HMS 1&2 (80:20) rose by BDT750/mt to BDT26,750/mt ex-yards Chattogram inclusive of local taxes from the prior week. Trades reported in the range BDT26,500-27,000/mt ex-yards Chattogram. The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT28,000/mt ex-yard, up by BDT500/mt from the prior week. 




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