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

Offers in the South Asian ferrous scrap import market were on an uptrend amid a recovery in demand and strengthening global cues. Many mills looked to refill ferrous scrap inventories before the winter season hampers logistics. In Bangladesh, despite weak domestic fundamentals, a few containerized trades were reported at increased prices amid high containerised freight charges. 


In Turkey, the Davis Index for US-origin HMS 1&2 (80:20), Wednesday, was at $287/mt cfr, up by $2/mt from Tuesday. Turkish mills have received bulk orders from Southeast Asian markets for rebar, which could raise scrap prices by another $5-10/mt in the coming days. 



Trades increased as a few buyers booked scrap before the prices rise further. Domestic demand, however, is still unsupportive for imports which kept transactions limited. 


The daily Davis Index for containerized shredded, Thursday, was at $322.67/mt cfr Chattogram, up by $0.34/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 $325-328/mt cfr Chattogram following the strengthening global cues and an increased gap between container freight for India and Bangladesh. 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 $320/mt cfr Chattogram with indications of a further rise once trades in Turkey pick up.  

The daily index for containerized US-origin HMS 1&2 (80:20), Thursday, settled at $311.86/mt cfr Chattogram, up by $3.73/mt. Some trades for Australia, UK, and US-origin HMS scrap were at $310-315/mt cfr Chattogram.


The index for Latin America-origin HMS 1&2 (80:20) settled at $306/mt cfr Chattogram on Thursday, up by $3/mt, with trades at the index price. Offers were scarce, and most Brazilian traders sought $307-310/mt cfr Chattogram for HMS 1&2 (80:20) as domestic demand remains firm in their home country. Asking prices were at $315/mt cfr Chattogram for #1 HMS scrap with low buying interest. 

Domestic shipbreaking scrap equivalent to P&S traded at BDT31,000/mt ex-yard Chattogram. 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 BDT48,500-49,000/mt ex-works.



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

The Davis Index for containerized shredded, Thursday, settled at $310.46/mt cfr Port Qasim, up by $0.29/mt from Wednesday. Trades for containerized shredded of European origin were reported at $308-309/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 $303-305/mt cfr Port Qasim. Offers for PNS sarya scrap were at $310/mt cfr on Thursday. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $294/mt cfr Port Qasim, up by $2/mt. Major mills stayed away from booking HMS scrap as they found offers unviable. 


The index for US-origin HMS 1&2 (80:20) settled at $292.5/mt cfr Port Qasim, up by $2.14/mt from Wednesday. US yards have started offering more volumes as supply has eased. But a few yards could run short of supply towards December on seasonal issues. Buyers too, have resumed restocking with more interest for shredded than HMS due to extra taxes on the latter. 

In the domestic market, Bala billet prices, however, lowered slightly on weak demand by PKR500-700/mt to PKR90,000-90,300/mt ex-works Punjab. Domestic Pure Q toke scrap equivalent to shredded traded at PKR70,800-71,000/mt del Lahore mill, down PKR200-400/mt on Thursday. 

Leading rebar producers in Karachi kept base offer prices unchanged at PKR111,000-112,000/mt ex-works. Mills are still waiting for demand in the infrastructure segment to pick up to raise offers. Market participants are hopeful of demand in the rural to increase further in the coming days. 


($1= PKR163.92; BDT85.12) 


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