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

Bangladeshi mills slowed their ferrous scrap purchases amid uncertainty in the Chinese steel market and rising prices. Some steel mills in Chattogram purchased scrap only to maintain their inventories for the next two months. Most medium and small-scale furnaces have stepped away from the market to avoid losses. 


The daily Dais Index for containerized shredded, Wednesday, settled at $487.5/mt cfr Chattogram, down $0.75/mt. Traders were unwilling to offer shredded at prices below $490-495/mt cfr Chattogram on elevated freight rates. 


In the bulk market, a few suppliers from the US and Europe were checking buyers’ interest with offers only above $485-495/mt cfr Chattogram on Wednesday. Firm Chinese steel, copper, and aluminum prices kept sentiment supported in the global market. Sellers were unwilling to accept present bids. Low container availability remains a challenge. 


Some mills could resume negotiations to restock seaborne scrap before prices move up further. Japanese suppliers continued to keep offers firm after a Chinese mill bought bulk at $490/mt cfr China. Japanese #2 HMS was offered at $475-480/mt cfr Chattogram.


On Wednesday, the Chinese domestic daily spot billet price index jumped by CNY140/mt to settle at CNY4,430/mt ($685/mt) ex-Tangshan including VAT. Chinese mills received billet import offers of $610-615/mt cfr China. But as billet import prices are rising slower than the domestic prices buyers could opt for overseas material. 


The index for HMS 1&2 (80:20) from Latin America on Wednesday settled unchanged at $458/mt cfr Chattogram. Traders bought containers of HMS 1&2 (90:10) at $455-460/mt cfr Chattogram. Brazilian yards offered material only above $465-470/mt cfr Chattogram. 


The daily Davis Index for US-origin containerized HMS 1&2 (80:20) settled unchanged at $462.5/mt cfr Chattogram. Offers were at $470-475//mt cfr Chattogram with no buyers interested in those levels. Indian sponge iron export offers were rangebound in the range $405-410/mt cfr Benapole or $415-420/mt cfr Chattogram. 


Domestic scrap prices up BDT1,500-2,000/mt 

On short supply, ship scrap equivalent to P&S were at BDT45,000-45,500/mt ex-yards up by BDT1,500-2,000/mt from prior Friday. Ship plates of 16mm size traded at BDT50,500/mt ex-yards. Supply from shipbreaking activities is expected to increase with most yards increasing demolition. These vessels were earlier delayed due to congestions at transhipments ports. 


Domestic billet offers were at BDT54,500-55,000/mt ex-works Chattogram, up by $500-1,000/mt from earlier trades. Mills offered billets at prices only above BDT57,000/mt ex-works amid increased input costs. With no alternatives to scrap which is costlier in both import and domestic market, mills are left with no option but to buy material at present price levels.  

Large steelmakers kept rebar prices at BDT67,500-68,000/mt ex-works. Demand from Dhaka-based mills has slowed as they await for rebar sales to pick up. Offers for rebar were at BDT64,000-64,500/mt ex-works. 




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