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

Bangladeshi steel mills showed increasing interest in ferrous scrap trades on Tuesday despite the winter break in supplier countries. Depleting inventories and rising domestic scrap prices pushed mills to seek imported scrap. All indications are in favor of an upward rally in imported scrap prices which kept buyers away. In the bulk market, bids from mills lagged $10/mt than current offers. 


The daily Davis Index for containerized shredded, Tuesday, settled at $475/mt cfr Chattogram, up by $0.36/mt from Monday. There were hardly any offers from the US, Europe and Australia as most yards are away on account of the New Year holidays. Trades are expected to resume only after Jan 4. A few traders offered shredded above $490/mt cfr Chattogram with no takers on Tuesday.


The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $464.29/mt cfr Chattogram, up by $2.15/mt from Monday. US suppliers are anticipating strong domestic demand in January and yard owners are hesitant in offering any material now. In the few trades that concluded in containers, HMS 1&2 (80:20) was sold to steel mills in the range of $458-465/mt cfr Chattogram this week.  

The daily index for Latin America-origin HMS 1&2 (80:20) Tuesday rose $1/mt to settle at $463/mt cfr Chattogram. Offers for mix HMS #1 and P&S were very limited in absence of suppliers while bids were around $445-455/mt cfr Chattogram.


Domestic scrap rises on tightening supply  

Following tightening supply domestically and active demand, domestic scrap prices rose in Bangladesh on Tuesday. Ship scrap equivalent to P&S rose and traded at BDT42,000-42,500/mt ex-works on Tuesday. Domestic HMS 1&2 (80:20) was offered at above BDT40,500-41,000/mt ex-yards Chattogram. Billet prices were at BDT51,000-52,000/mt ($601-612/mt) ex-works Chattogram, stable from Monday.


Large-scale rebar makers are attempting to raise offers to account for higher input costs. Prices for rebar were heard at BDT63,000-65,000/mt ex-works. On Monday, BSRM and AKS steel mills offered rebar at BDT65,000/mt and BDT64,000/mt ex works. Large mills indicated that rebar prices should be around BDT70,000/mt ex works to maintain their usual gap between scrap and rebar spread. There was strong resistance to book rebar above the BDT60,000/mt mark for infrastructure contractors.  


For shipbreakers, despite rising supply, yards haven’t bought many vessels yet. Shipbreakers are expected to be in the market soon, as they are operating at low stocks.

($1= BDT84.84)



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