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

Imported ferrous scrap prices in South Asia were mostly ‘flat to down’ on Monday. After a long while, Bangladeshi market showed signs of recovery as mills increased enquiries for imported ferrous scrap. Offers were scarce as most suppliers held back material to fetch higher prices as demand is expected to re-bounce in all subcontinental markets.  


In Pakistan, domestic steel prices remained low resulting in fewer in bids for imported scrap from major mills. Most buyers have cut down scrap purchases to immediate requirements.


In Turkey, US-origin HMS 1&2 (80:20) bulk prices fell further by $2.61/mt to $279.86/mt cfr Turkey on Friday in absence of trades.  



Bangladesh’s imported scrap market witnessed demand recover on Monday. Domestic steel market is turning positive as the government is making efforts to tackle the COVID-19 crisis through various incentives to help industries. Major mills are now operating at 90-100pc capacities resulting in a speedy consumption of raw material inventories. The impact of heavy rains and flood has subsided, and production activity is now expected to pick up further in Bangladesh.


Two 32,000mt bulk cargoes deal from the US West Coast were heard at $310-312/mt cfr Chattogram for equivalent HMS 1&2 (80:20) however, bids were around $300/mt cfr Chattogram in the prior week. Deals were not confirmed until the time of publication.    


The Davis Index for containerized shredded settled at $322.5/mt cfr Chattogram, up by $1.07/mt from Friday. Offers for shredded from UK yards were at $325-330/mt cfr Chattogram, a few trades concluded around index price while a few yards were able to get $330/mt cfr Chattogram on limited supply. Supply from Australia and New Zealand were also scarce.  


The index for Latin America-origin HMS 1&2 (80:20) settled at $295/mt cfr Chattogram, down by $3.75/mt from Friday. A few containers traded at the index price, with bids reported at $290/mt cfr Chattogram. Offers for #1 HMS from Brazil, Chile, and Europe were at $300/mt cfr Chattogram, with bids at $295/mt cfr Chattogram from small scale steelmakers.  

The index for US-origin HMS 1&2 (80:20) settled at $304/mt cfr Chattogram, down by $0.17/mt from Friday. Sellers offered HMS 1&2 (80:20) in the range $305-310/mt cfr Chattogram, while buyers were keen on booking scrap at $295-300/mt cfr Chattogram.  


In the domestic market, Bangladeshi mills traded square billets at BDT40,500-41,000/mt ex-works. A mill in Chattogram sold 5,000mt of billets at BDT40,500/mt ex-works Chattogram to Dhaka-based buyer. On the other hand, a few offers for billets were heard at BDT42,000/mt ex-works. Many are waiting for rebar prices to rise as after discounts small furnaces are offering rebar at BDT49,000/mt ex-works.


In shipbreaking markets, offers for containers and tankers jumped to $340-350/ldt against the last trades at $325/ldt indicating Bangladesh domestic prices are poised to rise on higher inputs costs in the next few days, a steel mill owner said. Domestic scrap offered at BDT30,000/mt delivered mill on Monday.  



Pakistani ferrous scrap importers booked limited volumes for imported scrap in order to fulfil their inventories. The 10-day Muharram festival is expected to keep activities slow. Buyers opt lower priced material as their domestic steel demand was subdued amid cash constraint.  


The Davis Index for containerized shredded settled at $307.86/mt cfr Port Qasim, down by $1.69/mt from Friday. Trades for the Europe-origin shredded were at $305-307/mt cfr Port Qasim. Offers from UK supplier yards for the grade were at $310-312//mt cfr Port Qasim on Monday with most steel mills in Karachi bidding for shredded at $305/mt cfr Qasim.


In the domestic market, indications of softening emerged as mills expect global imported scrap prices to correct. Bala billet prices dropped to PKR91,000-91,500/mt ex-works Punjab with shredded scrap Q toke trading at PKR71,500-72,000/mt ex-works Lahore. Prices dropped by PKR500/mt as market returned to normalcy and production rates increased, said a steel maker.  


The Davis Index for HMS 1&2 (80:20) of UAE-origin Monday settled at $295/mt cfr Port Qasim, down by $3/mt from Friday. Trades for UAE-origin mixed #1 HMS and P&S sarya scrap were at $300/mt cfr Port Qasim on Monday. Most UAE suppliers have managed to stay in the market despite an official ban on exports.  


The index for US-origin HMS 1&2 (80:20) settled at $290/mt cfr Port Qasim, down by $3.5/mt from Friday. Trades reported at the index price while offers were at $295-300/mt cfr Port Qasim.  


($1= PKR168.59; BDT84.82)

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