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

Inquiries for imported ferrous scrap by Bangladeshi mills increased on Thursday. But trading was slow due to a wide gap between bids and offers. Large mills could book bulk for April shipment amid limited inventories, resumption in government infrastructure projects, and high container freight rates.


The daily Davis Index for containerized shredded, Thursday, settled at $420/mt cfr Chattogram, up by $7.5/mt. Containerized shredded offers were in the range of $425-430/mt cfr Chattogram. Trading was slow as mills wait for indications of firm finished steel prices sustaining through Q1 2021.  


Dhaka-based mills purchased UK-origin P&S at $415-425/mt cfr Chattogram. Amid acute container shortage, some even expect offers to reach $435-445/mt cfr Chattogram by next week.


The daily Davis Index for containerized HMS 1&2 (80:20) from the US settled at $398.75/mt cfr Chattogram, up by $8.75/mt. Most US suppliers are hoping to raise prices further as Turkish mills have turned active for bulk bookings at prices higher by $10-15/mt from earlier price levels amid rising rebar offers.


The daily index for HMS 1&2 (80:20) from Latin America jumped by $8/mt to $398/mt cfr Chattogram as mills showed a willingness to accept higher bids in new negotiations. Trades for #1 HMS were reported at $405/mt cfr Chattogram on Thursday.


Mills were interested in HMS 1&2 (80:20) at $385-395/mt cfr from Brazil, Africa, Dubai, and Australia for their immediate requirements.


In the bulk market, inquiries are expected to pick up in the coming days. Offers by Australian yards for bulk shredded were heard at prices above $440-445/mt cfr Chattogram. Offers for Japanese #2 HMS in small bulk cargoes were at $420-425/mt cfr Chattogram.


Offers for Indian Sponge iron were at $360-365/mt cpt Benapole or $370-375/mt cfr Chattogram, up by $5/mt from Wednesday. The rise could make mills turn towards HMS scrap at $400/mt cfr Chattogram levels.


In the domestic market, shipbreaking scrap was offered at BDT39,000-39,500/mt ex yards on Thursday, showing signs of recovery.


Domestic billet traded at BDT50,000-50,500/mt ex-works Chattogram with a few raising asking rates to BDT51,000-52,000/mt ex-works on Thursday.


Domestic scrap and billet have gone up but rebar prices have remained flat holding few buyers back from ferrous scrap purchases.

Trades for rebar picked up aided by a gradual resumption of government projects. 

End-users purchased rebar at BDT58,000-60,000/mt ex-works from medium-scale producers. Large mills kept their offers for rebar at BDT65,000-66,000/mt ex-works amid strong resistance at higher offers from buyers.




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