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

Steel mills in Bangladesh were largely reluctant to book imported ferrous scrap in containers despite the resumption of bookings in other subcontinental markets. After buying a couple of bulks in late May, the appetite for ferrous scrap in containers turned soft. Mixed sentiments in major markets China and Turkey caused buyers to step back and wait for more clarity.  


In the national budget 2021-22 presented on June 3, the proposed duty reduction on stainless steel product was at BDT500/mt against BDT1,500/mt earlier. For few flat products import duty proposed at 5pc from 10-25pc existing rates. On scrap, advance tax (AT) is proposed to reduce to nil from 4pc at present.  A few mills seek clarity on the impact of this move before booking more raw materials. 


The daily Davis Index for containerized shredded, Friday fell marginally by $0.36/mt to settle at $535/mt cfr Chattogram, while the index recovers by $1.75/mt from prior Friday. Offers for containerized shredded from UK/EU-yards firm at $525-535/mt cfr Chattogram with limited buying. Bids lagged by around $5-10/mt as steel demand remains subdued in the country.  


Offers for P&S and #1 busheling, on Friday, were firm despite muted buying interest. The weekly indexes for the grades were at $545/mt and $570/mt cfr Chattogram, up by $2/mt respectively. Scrap generation and collection rates at supplier yards have taken a hit. Mills at eyeing busheling offers below $550/mt this week, disappointing traders.  


The daily Davis Index for HMS 1 &2 (80:20) from Latin America, Friday, slipped by $2/mt to $498/mt cfr Chattogram, while the index rose by $5/mt from prior Friday. Offers for #1 HMS remained firm amid improving demand in the Indian market above $505-510/mt cfr Chattogram.


On Friday, the indexes for US-origin containerized HMS 1&2 (80:20) fell by $2.5/mt to $510/mt while rose for the UK-origin to $503/mt and Australia-origin at $508/mt cfr Chattogram, up $2/mt and $1/mt from May 28. Deals for HMS 1&2 (80:20) heard in the range of $495-510/mt cfr Chattogram depending on the origin.  


In the domestic market, the weekly index for ship scrap equivalent to P&S settled at BDT48,500/mt ($572.44/mt) ex-yards, unchanged on Friday. The index for domestic HMS 1&2 (80:20) too remained unchanged at BDT46,250/mt ex-yards Chattogram. Heavy melt bundles sold at BDT44,000-45,500/mt ex-yards, down BDT500/mt.


Amid weak finished steel demand end users showed limited interest in buying large volumes. The weekly index for billet dropped to BDT60,500/mt ex-works, down BDT1,000/mt. Offers for 16mm ship plates at BDT54,000-55,000/mt ex-yards. However, for shipbreakers scrapped vessel offers rose further on high plate prices.  


The weekly index for rebar from large-scale mills settled at BDT72,500/mt, down BDT1,000/mt ex-works. The weekly indexes for rebar by medium and dropped to BDT67,250/mt ex-works medium and BDT61,750/mt ex-works small-scale mills, down by BDT1,750/mt and BDT1,250/mt, respectively. End-users in Bangladesh are unsure of booking at present levels as the arrival of monsoon could pressure both steel demand and prices.




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