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

Low demand for rebar in the Bangladesh domestic market is still affecting steelmakers, who have been unable to raise their asking prices. But few mills looked to restock material before imported scrap prices increase further.  


Large steelmakers were inclined towards booking bulk cargoes rather than paying above $350/mt cfr Chattogram for containerized shredded. A shortage of containers, mainly due to a mismatch between imports and exports, has also increased the landed cost for scrap. 


In the Japanese Kanto tender on November 11, one of the winning bids was for 15,000mt #2 HMS by a leading steelmaker in Bangladesh, according to Davis Index sources. Another small bulk deal was heard for H2 scrap at $330/mt cfr Chattogram. 

In other bulk markets, offers for US West Coast-origin HMS 1&2 (80:20) were at $338-345/mt cfr Chattogram with limited buying interest. With Turkish mills accepting $305-307/mt cfr levels for HMS 1&2 (80:20), bulk suppliers from the US and Australia are likely to refuse bids below $340/mt cfr Chattogram. Bangladesh preferred to book materials from Australia and Japan due to a shorter delivery period and better availability. 


The daily Davis Index for containerized shredded, Thursday, settled at $350.50/mt cfr Chattogram, up by $0.14/mt from Wednesday. Offers were in the range of $350-355/mt cfr Bangladesh amid strong global cues. A few mills were hoping to book shredded at around $340-345/mt cfr Chattogram from South America and Australia. 

The weekly Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $332.5/mt cfr Chattogram, up by $7.5/mt from Friday with a few deals at the index price. 


Bullish imported ferrous scrap and weak demand for finished steel have impacted margins for steel producers. Major mills are still focusing on their survival than profits. Steelmakers could stay away from the import market if steel demand fails to rise. 


The daily index for Latin America-origin HMS 1&2 (80:20) settled at $326/mt cfr Chattogram, up by $7/mt from a week ago. Brazilian traders sought prices above $328-330/mt cfr Chattogram due to firm prices in their domestic market. Trades for Latin American HMS #1 were at $330-335/mt cfr Chattogram with its index rising by $5/mt from the prior week. 


P&S from the UK and Latin America traded at $345-350/mt cfr Chattogram, with its index rising by $6/mt from the prior week. The weekly Davis Index for busheling settled at $363/mt cfr Chattogram, up by $5/mt with no major deals reported amid a supply crunch. 

Indonesian buyers were active for busheling trades paying the highest prices in Asia supporting a surge in prices for Japanese material.  


Finished, semi-finished steel

The weekly Davis Index for domestic billet Friday settled unchanged at BDT41,750/mt ($491.75/mt) ex-works Chattogram with trades at the index price. Major steelmakers in Chattogram on Thursday offered domestic billet at BDT42,000-42,500/mt ex-works. Some stockists sold billets at a discounted price of BDT41,000-41,500/mt ex-works Chattogram amid weak demand.


The weekly Davis Index for rebar from medium-scale steelmakers settled at BDT50,500/mt ex-works, flat, inclusive of VAT. Large steel producers  BSRM and AKS are offering rebar at BDT56,000-57,000/mt ex-works, respectively, with the index for large steelmakers’ rebar settling unchanged from last Friday at BDT56,500/mt ex-works. Dhaka-based finished steel producers offered rebars at BDT50,000-50,500/mt ex-works, but buyers were unwilling to raise bids above BDT49,000-49,500/mt ex-works. 


Domestic and ship scrap

Domestic shipbreaking scrap equivalent to P&S traded at BDT32,000-32,500/mt ex-yard Chattogram, down by BDT500/mt from the prior Friday. HMS 1&2 (80:20) was priced at BDT30,000-30,500/mt ex-yard Chattogram. The weekly Davis Index for the grade settled at BDT30,350/mt ex-yard on Thursday, up BDT136/mt. Offers for scrapped vessel imports were unchanged in the range of $350-360/ldt with indications of increased arrivals till the end of the year. 

($1= BDT84.77)



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