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

Bangladesh steel mills booked very limited scrap as they await domestic market dynamics to offer a clear picture. Major mills are still operating at 40-50pc capacities to match the sluggish demand. The upcoming rainy season, known to slow construction activity could impact finished steel demand. Domestic billet prices this week have dropped by around BDT1,000-1,500/mt ($12-18/mt) from BDT42,000-42,500/mt ex-plant levels.  


Though other South Asian markets like Pakistan and Bangladesh were in the bulk market, Bangladesh mills showed little or no interest in bulk bookings. This, mainly since ferrous scrap bulk offers are over $300/mt cfr Chattogram. 


In the container market, the Davis Index for shredded settled at $298/mt cfr Chattogram on Friday, up by $6/mt from Thursday and by $11/mt from the prior week. Yards in the UK and Europe offered shredded scrap in the range $300-310/mt cfr Chattogram but bids were still around $295-300/mt cfr. 


Till April, mills in the country were active for bulk imports. But with a persisting weak demand for steel, they have backed away from booking large volumes. Ferrous scrap prices in the global markets are likely to be under pressure in the coming days with the inflow of scrap in most yards in supplier countries improving. 

The Davis Index for containerised P&S settled at $300/mt cfr Chattogram, up by $20/mt from the prior week. UK-origin P&S traded at $300/mt cfr Chattogram on Thursday.


The daily index for US-origin HMS 1&2 (80:20) settled at $280/mt cfr Chattogram, up by $10/mt. 

The daily Davis Index for Latin American HMS 1&2 (80:20) settled at $270/mt cfr Chattogram, up by $7/mt. Offers from Brazil were at $275-280/mt cfr Chattogram with no buyers interested in those prices. 

The Davis Index for Australian HMS 1&2 (80:20) settled at $275/mt cfr Chattogram, up by $12/mt from the prior week. Offers, though were at $280/mt cfr Chattogram. 


Bangladesh domestic steel prices down on weak demand

Domestic steel prices in Bangladesh continued to drop on the back of weak demand. The government expenditure on large projects has halted for the time being. 


Trades of ferroalloys and sponge iron with India have also been hit by the pandemic and supplies with refractories of these materials is drying out. A few mills have also had to stay shut amid this shortage. 

The weekly index for domestic billet dropped to BDT41,000/mt ex-works Chattogram, down by BDT1,000/mt. The Davis Index for domestic HMS 1&2 (80:20) settled flat at BDT27,000/mt inclusive of local taxes ex-yard Chattogram from the prior week. The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT28,000/ mt ex-yard, flat from the prior week. 

The Davis Index for rebar from large steelmakers settled at BDT58,000/mt ex-producer, unchanged from the prior week. Major steelmakers were not ready to lower their prices for finished steel citing high input cost due to increased global ferrous scrap prices. 




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