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

Bangladeshi mills booked limited volumes of containerized scrap. Elevated freight rates and a global shortage of containers may keep overall landed costs for ferrous scrap high. Steelmakers thus refused to offer high discounts on steel sales.


Amid softening trend in the Turkish bulk prices, the daily Davis Index for containerized shredded dropped by $0.03/mt to settle at $553.04/mt cfr Chattogram on Friday. But the index rose by $5.18/mt from last Friday. A couple of deals for containerized shredded were reported at $553-555/mt cfr Chattogram. On Friday, mills decided to wait for a further drop in bulk markets before they book more volumes. Late on Friday, some traders reduced offers by $2-3/mt seasonal slowdown affects sentiment. 

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


The spread between HMS and industrial-grade scrap widened to a record $40-70/mt. The weekly indexes for P&S and #1 busheling were at $566/mt and $588/mt cfr Chattogram, up by $6/mt and $5/mt, respectively, despite low buying interest. A few confirmed trades for busheling were reported at $588-590/mt cfr Chattogram.


The daily Davis Index for HMS 1&2 (80:20) from Latin America, Friday, rose $2/mt to $521/mt cfr Chattogram. Deals for HMS 1&2 (80:20) concluded at $520/mt cfr Chattogram. The index rose by $13/mt from the prior Friday. Offers for #1 HMS were unchanged at $525-530/mt cfr Chattogram. 


On Friday, the index for US-origin containerized HMS 1&2 (80:20) increased to $530.63/mt cfr, gaining over $11/mt from the prior Friday. A gradual recovery in HMS trades pushed the indexes for HMS 1&2 (80:20) of UK-origin and Australia-origin to $523/mt and $530/mt cfr Chattogram, up by $8/mt and $10/mt, respectively, from June 11.


In the domestic market, the availability of domestic scrap was tight, and high imported scrap pushed asking rates up this week. The weekly index for ship scrap equivalent to P&S rose to BDT49,000/mt ($578/mt) ex-yards, by BDT1,750/mt. The weekly index for domestic HMS 1&2 (80:20) rose by BDT1,000/mt to BDT46,000/mt ex-yards Chattogram on Friday. Local melt scrap and rod cut bundles were offered at BDT42,000-44,000/mt ex-yards. 


Several small-scale mills were busy closing their books as the fiscal year ends soon. 

The weekly index for billet was at BDT59,500/mt ex-works, down BDT250/mt. For shipbreakers, offers for scrapped vessels remained at $550-570/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 continuous rains, demand for steel in the construction sector was weak. The weekly index for rebar from large-scale mills settled at BDT71,500/mt, down BDT500/mt ex-works. The weekly index for rebar by medium-scale steelmakers dropped to BDT66,500/mt ex-works, while the index for rebar from small-scale steelmakers was at BDT61,000/mt ex-works, down by BDT250/mt.

Steel mills, however, resisted lowering sales prices — a general trend during the monsoon months — supported by elevated imported ferrous scrap prices.



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