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

Shortage of containers and a likelihood of a declining supply towards the year-end gave imported ferrous scrap offers in South Asian markets a lift. A Bangladeshi mill booked bulk cargo while Pakistani buyers continued booking containerized shredded. Steelmakers believe a gradual resumption of infrastructural projects may create demand from end-users. 



Bangladeshi mills resumed trades for imported scrap amid a belief that prices could stay ‘flat to up’ for the rest of the year. Before supply dwindles during the winter months, mills looked to restock scrap. 

A mill in Chattogram resumed bulk imports after a long gap with a trade for 30,000mt cargo comprising shredded, HMS 1&2 (80:20), and P&S scrap at an average price of $321/mt cfr Chattogram, according to Davis Index sources. After this trade last week, sellers raised their offers for bulk cargo to $320325/mt cfr Chattogram. 


The Davis Index for containerized shredded, Tuesday, settled at $328.21/mt cfr Chattogram up by $2.64/mt. Offers on Tuesday were at $328-332/mt cfr Chattogram, but a few trades for material from the Oceania region still closed at $325/mt cfr Chattogram. 

The index for containerized US-origin HMS 1&2 (80:20), Tuesday, settled at $318.21/mt cfr Chattogram, up by $2.21/mt from last Friday. Trades for the UK and US-origin HMS 1&2 (80:20) were at $318-320/mt cfr Chattogram. The index for Latin America-origin HMS 1&2 (80:20) settled at $313/mt cfr Chattogram, up by $2/mt from Friday. South American yards sold HMS #1 at $320/mt cfr Chattogram. Most supplier yards chose to stay away from the export market and preferred to cater to their bullish domestic markets. 


Domestic shipbreaking scrap equivalent to P&S traded at BDT30,500-31,000/mt ex-yard Chattogram. HMS 1&2 (80:20) was priced at BDT28,500-29,000/mt ex-yard Chattogram, unchanged from late last week. Dhaka-based finished steel producers sold rebars at BDT49,000-49,500/mt ex-works, up BDT500/mt from the prior week. 



Pakistan ferrous scrap importers booked containers for quicker deliveries at prices which were higher than prior deals. A gradual resumption in mega infrastructure projects is likely to improve steel demand in the country. 


The daily Davis Index for containerized shredded, Tuesday, rose by $4.56/mt to settle at $321.31/mt cfr Port Qasim. Trades for UK-origin shredded in containers were heard at $321-324/mt cfr Port Qasim. Offers then increased to $325/mt cfr Port Qasim following global cues. Should mills could continue to restock, prices could rise further.   


Containers of Dubai-origin #1 HMS traded at $313-315/mt cfr Port Qasim. Offers for PNS sarya scrap were at $315-320/mt cfr. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $309/mt cfr Port Qasim, up by $3/mt from Friday. Mills chose to buy shredded over HMS scrap this week. Offers from South American ferrous scrap suppliers were at $305-310/mt cfr Qasim. 

The index for US-origin HMS 1&2 (80:20) settled at $307/mt cfr Port Qasim, up by $0.5/mt from Friday. In the domestic market, Bala billet prices were unchanged at PKR90,000-90,200/mt ex-works Punjab amid weak demand. 


Domestic Pure Q toke scrap, equivalent to shredded sold at PKR68,500-69,000/mt del Lahore mill, unchanged from Friday. Leading rebar producers in Karachi offered rebar at higher prices PKR110,000-111,000/mt ex-works, in order to maintain spread between scrap and rebar due to bullish imported scrap prices. 

Pakistan Rupee has appreciated to 160.65 against US $1 from 162.5 levels on Friday, giving a boost to imports sentiments further.


($1= PKR160.65; BDT84.8)


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