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

Bangladesh’s domestic steel market has been less supportive towards ferrous scrap imports for more than a month, with traders buying only as per requirement while major mills are focusing on finished steel sales. 

Transportation activities were disturbed due to heavy rains and floods in the outskirts of Dhaka. Most steel mills focussed on settling their utility bills and other statutory dues with September drawing to a close.  


The weekly Davis Index for containerized shredded, Thursday, settled at $320.21/mt cfr Chattogram, down $2.29/mt. Several trades for containerised shredded scrap from Europe, Australia and New Zealand were reported at $320-322/mt cfr Chattogram against bids of $315-318/mt cfr Chattogram. On Thursday, offers for containerized shredded from the UK were heard at $325/mt cfr Chattogram while buyers stayed away.  


Major mills are seeking government’s help to tide over losses incurred due to the pandemic as they believe demand is unlikely to recover before November. 

Two small bulk cargoes from Japan concluded this week as suppliers returned from holidays with lower offers to Bangladeshi buyers. Prices for #2 HMS in small bulks were at $303-305/mt cfr Chattogram. In other bulk markets, two shredded cargoes’ trades from last week were heard at $325/mt cfr levels, however, leading steelmakers in Bangladesh denied these deals citing they have enough scrap inventories and the prices being non-viable. The price level represents a $10/mt drop from a prior bulk trade which concluded in early September.


The index for US-origin HMS 1&2 (80:20) in containers settled at $301.29/mt cfr Chattogram, down by $4.07/mt from Wednesday. Sellers offered HMS 1&2 (80:20) at $305/mt cfr Chattogram, while maximum bids reached $300/mt cfr Chattogram. Major mills have enough inventories to fulfill their orders and appetite for imported scrap could remain weak till November, said a trader.


The weekly index for UK/EU-origin HMS 1&2 (80:20) dropped by $7/mt to $296/mt cfr Chattogram. A few sellers offered HMS 1&2 (80:20) at $300-302/mt cfr Chattogram, while bids dropped to $295/mt cfr Chattogram on Thursday. Australian yards found Bangladeshi bids non-workable. The weekly Davis Index for Australian HMS 1&2 (80:20) settled at $300/mt cfr Chattogram, down $5/mt.  


The index for Latin America-origin HMS 1&2 (80:20) settled at $298/mt cfr Chattogram, down by $3/mt from Wednesday and $8/mt down from last Friday. Offers were scarce and most Brazilian traders sought $305/mt cfr Chattogram for HMS 1&2 (80:20) against bids of $290-295/mt cfr Chattogram. Trades were reported at $300-305/mt cfr Chattogram for Latin American HMS #1 on Thursday.  


The weekly Davis Index for busheling settled at $337/mt cfr Chattogram, up by $1/mt on firm offers from suppliers on tight supply. P&S from South America and Africa offered at $315-318/mt cfr Chattogram. The weekly index for the grade settled at $315/mt cfr, down by $3/mt. Brazilian P&S scrap containers traded at $315/mt cfr Chattogram while offers for the grade of UK/EU-origin at $318-320/mt cfr Chattogram against bids of $310/mt cfr Chattogram.  


Finished, semi-finished steel

Domestic steel demand in Bangladesh is still far from normal. Only branded rebar suppliers were able to afford imported scrap. The impact of floods in manufacturing areas of Dhaka is still there and disruption of transportation has suspended trades in many local markets.  

The weekly index for domestic billet Thursday settled at BDT40,500/mt ($483.3/mt) ex-works Chattogram. Several trades were reported at the index price. Market participants believe demand for rebar could take longer to recover to pre-pandemic levels and pulled billet purchase prices down BDT500-1000/mt from a week earlier.  

Major steelmakers in Chattogram are offering volume-based discounts to push sales amid a pile-up of finished inventories. Large steelmakers sold rebar at BDT55,000/mt ex-Chattogram, pulling the index down by BDT500/mt from the prior week. Leading mills sold rebar in the range BDT54500-55,500/mt ex-works.  

The weekly Davis Index for rebar from medium steelmakers settled at BDT50,000/mt ex-works, down BDT250/mt from the prior week, inclusive of VAT. Rebar by small-scale producers traded at BDT49,000/mt ex-works, flat from the prior week.


Domestic and shipbreaking scrap

Bangladeshi recyclers held offers stable at $360-370/ldt cfr Chattogram from the prior week. Domestic shipbreaking scrap equivalent to P&S traded at BDT30,500/mt delivered mill on Thursday, down BDT500/mt from the prior week. HMS 1&2 (80:20) was at BDT28,500-29,000/mt ex-Chattogram. The weekly index for HMS 1&2 (80:20) settled at BDT28,750/mt ex- Bangladesh yard down BDT250/mt from last Friday.  




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