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

Containerized imported ferrous scrap offers in Bangladesh soar amid tightening supply and indications of a strong come back from Chinese mills. Tokyo Steel in Japan hiked domestic ferrous scrap purchase prices by JPY1,000-2,000/mt ($9-19/mt) delivered mill. Positive sentiment in Japan, Tuesday, spiked offers to Bangladesh by $15-25/mt for both bulk and containers.  


Inquiries picked up on Tuesday as mills sought to restock raw material inventories. Domestic finished steel demand in March is expected to be bullish with peak construction season around the corner.  


The Davis Index for containerized shredded, Tuesday, settled at $449.69/mt cfr Chattogram, up by $17.5/mt from Monday. Bids for shredded at $440-445/mt cfr Chattogram against offers of $450-460/mt cfr. Mills are expected to opt for bulk purchases over containers amid high container freights.  


In the bulk market, a small bulk deal for 18,000mt #2 HMS from Japan heard at $440-445/mt cfr Chattogram. Shredded from Japan in small bulk offered at $465-470/mt cfr Chattogram while a European yard offered HMS 1&2 (80:20) in bulk at $470-480/mt cfr Chattogram.  


The daily Davis Index for containerized HMS 1&2 (80:20) from the US settled at $417.5/mt cfr Chattogram, up by $7.5/mt; while the index for the grade from Latin America was at $415/mt cfr Chattogram, up by $6/mt. Some trades reported with offers from South American yards soaring to $425-430/mt cfr Chattogram on Tuesday.


Traders believe a considerable drop in freight rates is unlikely despite easing of container supply. This might keep the landed cost of imported ferrous scrap elevated in the coming days.  


There were only a few offers for HMS #1 from Chile with sellers targeting $425-430/mt cfr Chattogram. Most suppliers stayed away from seaborne trade amid strong domestic demand and prices.  


High iron ore and pellet export prices in India continued to strengthen offers for Sponge iron, which traded at $385-390/mt cpt Benapole or $395-400/mt cfr Chattogram.  


Mills to hike rebar prices

Ship scrap equivalent to P&S traded at BDT40,000-41,000/mt ex-works. Domestic billet traded at BDT50,000-50,500/mt ex-works Chattogram. Large scale steelmakers offered rebar at BDT65,000-66,000/mt ex-works. Mills canceled discounts amid rising imported scrap prices and could hike steel prices in the coming days.  


Many mills had booked large tonnages in early January at higher prices which would be delivered in the coming days. While some Chattogram based mills are preferring production through domestic ship-breaking scrap which is still cost-effective over imported scrap delivered mill. For imported scrap at $440/mt cfr Chattogram delivered basis price is above BDT41,500-42,000/mt.


Rebar offers from medium-scale mills in Dhaka at BDT59,000-60,000/mt ex-works, while small-scale mills offered rebar at BDT56,500-57,000/mt ex-works.  





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