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

Offers in the South Asian ferrous scrap import market rose amid a recovery in demand. Many mills looked to refill ferrous scrap inventories before the winter season. A few buyers believe prices could rise in the coming days and thus booked containers before prices strengthen. Weak steel demand in the retail estate and construction sectors, however, remains a concern for steelmakers.

In Turkey, the Davis Index for US-origin HMS 1&2 (80:20), Monday, was at $284.88/mt cfr Turkey, up by $1.96/mt from last Friday. 



Sentiment for ferrous scrap imports was positive on Tuesday as finished steel inventories started lowering.


The Davis Index for containerized shredded Tuesday settled at $307.5/mt cfr Port Qasim, up by $1.64/mt from Monday. Trades for containerized shredded of Europe-origin were reported at $307-308/mt cfr Port Qasim. Offers from UK yards were at $310-315/mt cfr Port Qasim on Tuesday. Higher offers pushed the index up with resumption in inquiries on Tuesday. A mill whose scrap inventory has started to deplete on increased production rate, bought shredded at $310-312/mt cfr Qasim and busheling scrap at $318/mt cfr Port Qasim despite offers of $320-325/mt cfr Qasim.

Dubai-origin #1 HMS scrap in containers traded at $300-305/mt cfr Qasim on Tuesday, up by $5/mt from the prior day. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $290/mt cfr Port Qasim, up by $2/mt from Monday. Offers for HMS 1&2 (80:20) were at $290-295/mt cfr Port Qasim on Tuesday. Major mills stayed away from booking HMS scrap citing unviable offers. 


The index for US-origin HMS 1&2 (80:20) settled at $288/mt cfr Port Qasim, up by $1.57/mt from Monday. Most US yards were unwilling to offer large volumes citing stronger domestic demand in October. Offers were at $290-295/mt cfr Port Qasim against bids of $285/mt cfr Port Qasim. A few yards could run short of supply towards December on seasonal issues. 

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 at PKR71,200-71,300/mt del Lahore mill, flat from last week. 

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. Inventories thus remain stockpiled. Areas reeling under floods are struggling to keep business as usual. 

The daily Davis Index for containerized shredded, Tuesday, was at $320.88/mt cfr Chattogram, up by $0.75/mt. Buyers preferred shredded from Australia and New Zealand in containers amid quicker deliveries at $320-322/mt cfr Chattogram. UK yards were unwilling to offer material below $325/mt cfr Chattogram on Tuesday. A few buyers placed bids of $315/mt cfr Chattogram for shredded, but trades failed to materialize at those prices. 

In the bulk market, West Coast US-origin HMS 1&2 (80:20) offers continued to fall following weak global cues and prolonged silence from Bangladeshi mills. Offers were at $312-315/mt cfr Chattogram, down $5/mt with no buyers at those levels. 

Amid support from the Chinese market, a few Japanese suppliers raised their offers by $5/mt to $310/mt cfr Chattogram for #2 HMS scrap. 


The index for containerized US-origin HMS 1&2 (80:20), Tuesday, settled at $307.5/mt cfr Chattogram, up by $2.5/mt from Monday. 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 $302/mt cfr Chattogram on Tuesday, up by $2/mt, with trades at the index price. Offers were scarce, and most Brazilian traders sought $305/mt cfr Chattogram for HMS 1&2 (80:20) as domestic demand remains firm in their home country. 

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 BDT500/mt. 


On Tuesday, domestic billet prices in Bangladesh showed an uptick following indications of demand recovery. Billet trades were at BDT41,000-41,300/mt ex-works, up by BDT500-1,000/mt from late last week. Small-scale producers offered rebar at BDT49,000-50,000/mt ex-works, down by at least BDT4,000-5,000/mt compared to the prices quoted by large steel producers like BSRM and AKS. 


($1= PKR163.62; BDT84.67)


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