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

Bangladeshi steel mills continued to book imported ferrous scrap, albeit, on a need basis. With the $100-200/mt rise in freight rates for TEU’s, effective April 1, most buyers increased their bids to secure material. A sharp rise in local steel prices and sustained demand boosted sentiment for scrap imports. 


In a recent deal, a Chattogram-based steelmaker bought 2,000mt of Singaporean P&S scrap at $465/mt cfr Chattogram. While Dubai origin P&S scrap was offered at $470-475/mt cfr Chattogram. The Davis Index for P&S settled at $473/mt cfr Chattogram scaling a 3-week high.


Another factor driving scrap prices is a sharp rise in Indian Sponge iron export offers, which rose over $15-20/mt in a day on tight supply and high domestic prices. Indian Sponge iron export offers heard at $415-420/mt cpt Benapole on Thursday or over $425-430/mt cfr Chattogram, thereby turning steel mills to focus on the imported scrap market. 


The daily Davis Index for containerized shredded, Thursday, settled at $465.71/mt cfr Chattogram, up by $3.21/mt. Offers were in the range of $465-475/mt cfr Chattogram. After the conclusion of a significant volume of shredded at $455-460/mt cfr Chattogram early this week, offers jumped up by at least $10/mt amid higher freight rates.


UK-origin busheling and tin plates scrap in containers were offered at $490-495/mt cfr Chattogram on fear of a dip in industrial scrap generation due to the temporary shutdown of auto plants.


The daily index for HMS 1&2 (80:20) from Latin America Thursday settled at $447/mt cfr Chattogram, up by $4/mt from Wednesday. Few offers were at $450-455/mt cfr Chattogram to cater improving buying intertest. The indices for US, UK, and Australia-origin containerized HMS 1&2 (80:20) settled at $452.5/mt, $437/mt, and $447/mt cfr Chattogram amid rising expectations. 


Domestic steel prices up 

Trades for ship scrap equivalent to P&S at BDT46,500-47,000/mt ex-works. Domestic melting HMS 1&2 (80:20) offered at BDT45,000-45,500/mt ex-yard Chattogram.


Domestic billet prices at BDT57,000-57,500/mt ex-works Chattogram. Southeast Asian billet offers rose to $640-645/mt cfr amid high freight charges.


All large steelmakers kept asking rates for rebar in the range BDT68,500-69,000/mt ex-works post price hikes announced last week. BSRM, AKS, GPH, and KSRM raised their asking rates for rebar to BDT70,500/mt, BDT68,000/mt, BDT68,500/mt, and BDT68,500/mt, respectively. These prices are up BDT1,500-2,000/mt from the prior week. If imported ferrous scrap maintains its uptrend then rebar rates could rise further, believe mill owners. 


On Thursday, 16mm ship plate traded at BDT56,000/mt ex-yards while imported scrapped vessels prices rose to $490-500/ldt cfr Chattogram. 


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