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

Offers in the South Asian ferrous scrap import market inched up amid a recovery in demand and strengthening global cues. Many mills looked to refill ferrous scrap inventories before the winter season hampers logistics. Pakistani buyers paid $2-3/mt higher for shredded than those in other South Asian markets. In Bangladesh, weak domestic fundamentals have rendered ferrous scrap bulk imports unviable. 


In Turkey, the Davis Index for US-origin HMS 1&2 (80:20), Tuesday, was at $285/mt cfr, up by $1.96/mt from Monday. Turkish mills have received bulk orders from Southeast Asian markets for rebar at $470-472/mt cfr Southeast Asia creating a room for scrap prices to climb another $5-10/mt in the coming days. Thus, traders are hoping for prices to rise in South Asia as well. 



Sentiment for ferrous scrap imports strengthened further on Wednesday. Finished steel inventories also continued to decline. 

The Davis Index for containerized shredded, Wednesday, settled at $310.17/mt cfr Port Qasim, up by $2.67/mt from Tuesday. Trades for containerized shredded of Europe-origin were reported at $307-308/mt cfr Port Qasim. Offers from UK yards were at $312-315/mt cfr Port Qasim, with a few deals at $310-312/mt cfr Port Qasim. 

Dubai-origin #1 HMS scrap in containers traded at $300-305/mt cfr Port Qasim, unchanged from the prior day. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $292/mt cfr Port Qasim, up by $2/mt from Tuesday. Offers for HMS 1&2 (80:20) were at $292-295/mt cfr Port Qasim on Wednesday. Major mills stayed away from booking HMS scrap citing unviable offers. 

The index for US-origin HMS 1&2 (80:20) settled at $290.36/mt cfr Port Qasim, up by $2.36/mt from Tuesday. Most US yards were unwilling to offer large volumes citing stronger domestic demand in October. Amid strengthening global cues, offers rose to $290-295/mt cfr Port Qasim against bids of $287-288/mt cfr Port Qasim. A few yards could run short of supply towards December on seasonal issues and buyers resumed restocking materials with more interest for shredded than HMS due to extra taxes on the latter. In the domestic market, Bala billet prices were unchanged at PKR91,000/mt ex-works Punjab amid thin trades. Domestic Pure Q toke scrap equivalent to shredded traded unchanged at PKR71,200-71,300/mt del Lahore mill. 


Leading rebar producers in Karachi kept base offer prices flat at PKR111,000-112,000/mt ex-works. Some mills, however, are still waiting for demand in the infrastructure segment. 



Scrap imports remained slow as most mills are still operating at lower capacities. The domestic steel market remained weak and prices sluggish. 


The daily Davis Index for containerized shredded, Wednesday, was at $322.33/mt cfr Chattogram, up by $1.45/mt. Buyers preferred shredded from Australia and New Zealand in containers amid quicker deliveries at $317-320/mt cfr Chattogram. UK yards were unwilling to offer material below $325/mt cfr Chattogram on Wednesday following rising global prices. Bids, however, were at $315-320/mt cfr Chattogram. 


In the bulk market, West Coast, US-origin HMS 1&2 (80:20) offers were at $310-315/mt cfr Chattogram with indications of a rise once Turkey starts buying actively. 


The daily index for containerized US-origin HMS 1&2 (80:20), Wednesday, settled at $308.13/mt cfr Chattogram, up by $0.63/mt. Some trades for Australia and US-origin HMS scrap were at $305-310/mt cfr Chattogram.

The index for Latin America-origin HMS 1&2 (80:20) settled at $303/mt cfr Chattogram on Wednesday, up by $1/mt, with trades at the index price. Offers were scarce, and most Brazilian traders sought $305-307/mt cfr Chattogram for HMS 1&2 (80:20) as domestic demand remains firm in their home country. Offers were at $310-312/mt cfr Chattogram for #1 HMS scrap with low buying interest. 

Domestic shipbreaking scrap equivalent to P&S traded at BDT31,000-31,200/mt ex-yard Chattogram, unchanged. HMS 1&2 (80:20) was priced at BDT28,500-29,000/mt ex-yard Chattogram, down by BDT500/mt. Small-scale producers offered rebar at BDT49,000-50,000/mt ex-works.


GPH Ispat Limited, one of the leading steelmakers in Bangladesh has signed a contract with a Chinese company to export 25,000mt MS billets worth $10.17mn. As per sources, the equivalent price is around $407/mt fob Chattogram or BDT35,000/mt ex works. The price is lower than present levels hovering around BDT40,000-41,000/mt ex-works in Chattogram as the steelmaker was trying to generate some liquidity. The transaction is not the representation of current market prices, said a trader.


($1= PKR163.92; BDT85.12) 


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