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

Bangladeshi mills turned active for containerised deals after booking a couple of bulk trades this week. Bangladesh emerged as the most preferred market in South Asia following comparatively weak demand in Pakistan and India. 


A possibility of freight hike and heavy congestion at Chattogram port could push landed cost up by $30-35/mt.


Port congestion has delayed unloading and berthing for bulk vessels to over 15 days from the usual of 5-7 days leading to a shortage of readily available material in the market. Amid delays, buyers opted for domestic scrap and sought material from different origins, said importers.


In the bulk market, yards from US West Coast sold two bulk cargoes to mills in Chattogram ranging from $453-455/mt cfr Chattogram for HMS 1&2 (80:20). Another shredded cargo of 32,000mt is being negotiated at $460/mt cfr Chattogram.  


A fall in Japanese small bulk prices weighed down sentiment. Bids from Vietnamese mills dropped in the range $425-435/mt cfr Vietnam prompting Bangladeshi mills to target prices #2 HMS below $445-450/mt cfr Chattogram on Friday. Importers anticipate steel demand to drop once industrial activities slow during Ramadan starting April 12. The arrival of monsoons could further extend the lull for a few more weeks.


The daily Davis Index for containerized shredded, Friday, settled at $452.14/mt cfr Chattogram, down by $3.57/mt. Prices dropped by $15.36/mt from a week earlier. Trades from the UK/EU and the US reported at $445-460/mt cfr Chattogram. Most mills booked to secure material latest by early April. 


There was good demand for premium grades like P&S and Busheling in Bangladesh. A major mill targeted P&S at around $460/mt cfr Chattogram. UK-origin busheling in containers offered at $465-470/mt cfr Chattogram. The Davis indices for P&S and #1 busheling, Friday, settled at $462/mt and $472/mt, down by $8/mt and $9/mt, respectively, from the prior week.


The daily index for HMS 1&2 (80:20) from Latin America settled at $433/mt cfr Chattogram. Bids dropped to $425-430/mt cfr Chattogram, with only a few offers in the market. Indices for US-origin, UK and Australia origin containerized HMS 1&2 (80:20) settled at $438.75/mt, $430/mt and $440/mt cfr Chattogram, down $8-10/mt from a week earlier. 


Rebar prices reverse on demand 

Amid stable supply from shipbreaking operations, the weekly index for ship scrap equivalent to P&S inched down by BDT250/mt to BDT43,500/mt ex-works. The index for domestic HMS 1&2 (80:20) remained unchanged at BDT41,750/mt ex-yard Chattogram. 

Indian Sponge iron export prices remained rangebound at $380-385/mt cpt Benapole or above $400-405/mt cfr Chattogram. 


Domestic billet prices remained at BDT55,000-55,500/mt ex-works Chattogram, with the index down BDT500/mt from a week earlier. Most government projects have delayed payment cycles resulting in cash flow issues for large mills. Most believe prices could remain unchanged for the next two weeks and then drop by at least BDT5,000/mt in April. 


The index for large steelmakers’ rebar, Friday, increased by BDT250/mt to BDT67,250/mt ex-works. Large mills canceled discounts amid recovering demand and costlier landed ferrous scrap. The index for rebar from medium-scale mills in Dhaka reversed by BDT500/mt to BDT63,500/mt ex-works. Small-scale mills sold rebar in the range BDT57,000-58,000/mt ex-works.


On Friday, 16mm ship plates were offered at BDT48,500-49,500/mt ex-yards. Supply from ship-breaking activities could increase as most yards are increasing the pace of demolition.



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