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

Bangladeshi mills booked a limited volume of containerized imported ferrous scrap. Most steelmakers are hoping for prices to decline further before booking more material. But a possibility of freight hike and heavy port congestion at the Chattogram port could demand.


At present, around $800 port congestion charges are to be paid by buyers, this is equivalent to $30-35/mt per container. The landed cost of containerized ferrous scrap could rise by $40-50/mt in April. Port congestion has delayed unloading and berthing for bulk vessels from the usual of 5-7 days to over 15 days, according to importers.


In the bulk market, yards from US West Coast sold two bulk cargoes to mills in Chattogram. One of those comprised of HMS 1&2 (80:20) at $453/mt and shredded at $458/mt cfr; while the other included HMS 1&2 (80:20) at $455/mt and shredded at $460/mt cfr. 


Importers anticipate the steel market to drop once industrial activities slow ahead of the Ramadan holidays in April. The arrival of monsoons later could extend the lull for a few more weeks. 

The Davis Index for containerized shredded, Thursday, settled at $455.71/mt cfr Chattogram, up by $0.71/mt from Wednesday. Most sellers hoped for prices to bottom out soon. For shredded, offers were in the range of $455-465/mt cfr Chattogram with buying interest in the range of $445-450/mt cfr Chattogram. A few Dhaka-based mills bought the grade at $460-465/mt cfr Chattogram and are in a hurry to get it delivered before Ramadan starts.


Offers for P&S were above $450-455/mt cfr Chattogram. UK-origin busheling in containers was offered at $465-470/mt cfr Chattogram.

The fall in Japanese small bulk prices weighed sentiment down. Bids from Vietnamese mills dropped to $445-450/mt cfr Vietnam from the US West Coast. Bangladeshi mills targeted prices below $455/mt cfr Chattogram. 

The index for HMS 1&2 (80:20) from Latin America settled unchanged at $435/mt cfr Chattogram. Bids dropped to $425-430/mt cfr Chattogram, with only a few offers in the market. Amid firm offers driven by fright hike, the daily Davis Index for US-origin containerized HMS 1&2 (80:20) settled at $442.5/mt cfr Chattogram, up by $2.25/mt. 


Domestic steel inch down 

Domestic steel prices dropped by BDT500/mt on Thursday. Most believe prices could remain unchanged for the next two weeks and then drop by BDT5,000/mt at the minimum in April. 

Offers for ship scrap equivalent to P&S were flat in the range BDT43,000-43,500/mt ex-works. Domestic Melting HMS 1&2 (80:20) was offered at BDT41,000-41,500/mt ex-yard Chattogram. Most re-rollers looked to restock domestic scrap ahead of Ramadan. Indian sponge iron export prices marginally increased in the range of $380-385/mt cpt Benapole or above $400-405/mt cfr Chattogram. 

Domestic billet prices were unchanged at BDT54,500-55,000/mt ex-works Chattogram. Offers for rebar were at BDT65,000-66,000/mt ex-works. Offers for rebar from medium-scale mills in Dhaka were flat at BDT63,000-63,500/mt ex-works. Small-scale mills offered rebar in the range BDT56,500-57,000/mt ex-works.




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