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

Large-scale mills in Bangladesh were active for both containerized and bulk bookings to refill inventories. Deals for three bulk cargoes were heard this week. On Friday, following global cues, asking prices increased and slowed trading. Steel demand in the Bangladesh domestic market remained affected due to the monsoon. Ahead of the financial year close, mills focused on closing their books.


The daily Davis Index for HMS 1&2 (80:20) from Latin America, Friday,  up by $1/mt to $517/mt cfr Chattogram. Deals for HMS 1&2 (80:20) concluded at $515-520/mt cfr Chattogram. The index declined by $4/mt from the prior Friday. Offers for #1 HMS were at $525/mt cfr Chattogram on Friday. Elevated freight rates and a global shortage of containers have kept landed costs for containerized scrap high.


On Friday, the daily index for US-origin containerized HMS 1&2 (80:20) settled unchanged at $526.25/mt cfr Chattogram.  Dubai-origin HMS #1 and P&S traded at $540/mt cfr Chattogram. The daily indexes for UK-origin and Australia-origin HMS 1&2 (80:20) were unchanged at $520/mt and $527/mt cfr Chattogram, respectively. From June 18, these indexes were down by $3/mt.


The daily Davis Index for containerized shredded settled at $549.25/mt cfr Chattogram on Friday, up by $1.75/mt. The index dropped $3.79/mt from last Friday. Offers for EU/UK origin-shredded were only above $550/mt cfr Chattogram against bids of $540-545/mt cfr Chattogram.


Extended semiconductor chip shortage has forced automakers to halt production, keeping the supply of prime grades low.

The spread between HMS and industrial-grade scrap widened to a record $50-60/mt. The weekly indexes for P&S and #1 busheling settled at $561/mt and $583/mt cfr Chattogram, respectively, both down by $5/mt. Limited volumes of busheling sold at $582-583/mt cfr Chattogram on late Thursday.


In the domestic market, the availability of domestic scrap was tight. The weekly index for ship scrap equivalent to P&S settled at BDT49,500/mt ($584/mt) ex-yards, up by BDT500/mt. The weekly index for domestic HMS 1&2 (80:20) rose by BDT250/mt to BDT46,250/mt ex-yards Chattogram on Friday. Offers for local melt scrap and rod cut bundles were at BDT43,000-44,000/mt ex-yards.


The weekly index for billet was unchanged at BDT59,500/mt ex-works. For shipbreakers, offers for scrapped vessels were at $560-570/mt cnf, depending on the type. But yards decided to wait for prices to cool off amid dull demand and seasonal slowness. Shipbreaking plates’ offers were unchanged at BDT53,500-54,000/mt ex yards.


Amid limited construction demand, trades improved for finished steel supporting prices. The weekly index for rebar from large-scale mills settled unchanged at BDT71,500/mt, ex-works. The weekly Davis Indexes for rebar by medium-scale and small-scale steelmakers remained unchanged at BDT66,500/mt and BDT61,000/mt ex-works, respectively.




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