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

Imported ferrous scrap prices in South Asia inched up on Thursday. Suppliers held on to their offers on strong global cues. 



Anticipating an acute shortage of ferrous scrap in July-August, a few buyers increased inquiries this week. Trades are still thin as mills continue to face a labour shortage. Bullishness in import prices also kept trades tepid as some steelmakers still face a liquidity crunch. 

The rising COVID-19 cases few major states also raised fears about the possibility of imposition of transport restriction. Additionally, construction activity also slows down during the monsoon season set to begin soon. 

The daily Davis Index for containerised shredded settled at $287/mt cfr Nhava Sheva, up by $2/mt. Offers were at $290/mt cfr Nhava Sheva for material from the UK and Europe. No buyer was ready to book shredded containers amid demand concerns. Though buyers raised their bids, they still fell short of offers and were at $280-285/mt cfr Nhava Sheva.

Trades for HMS scrap were slow due to a drop in domestic finished and semi-finished steel prices by Rs1,000/mt in a week. The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $273/mt cfr Nhava Sheva, up by $3/mt from Wednesday. The index for US-origin HMS 1&2 (80:20) settled at $270/mt cfr Nhava Sheva, unchanged from Wednesday. 

Offers for HMS 1&2 (80:20) from Australia and Africa were at $270-280/mt cfr Nhava Sheva. Bids, however, lagged at $260-265/mt cfr Nhava Sheva. 



Domestic steel demand in Pakistan has started to recover and billet prices rose by PKR3,000-4,000/mt from the prior week. Market participants now eye the budget announcement scheduled on June 12 and stayed away from booking ferrous scrap. Suppliers hope for scrap prices to rise in the coming days following Turkish import prices.  

The daily Davis Index for US-origin containerized shredded settled flat at $292/mt cfr Port Qasim on Wednesday. Trades for US-origin shredded were heard at $288-292/mt cfr Port Qasim. A few suppliers from the UK and Europe, however, raised offers to $294-295/mt cfr Port Qasim. 

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $273/mt cfr Qasim, up by $1/mt from the prior day. A few trades were reported at index prices. However, there were only limited sellers in the market due to the export ban imposed by the UAE government. 

The index for US-origin HMS 1&2 (80:20) was at $276/mt cfr Qasim, up by $1/mt from the prior week. A few offers were at $275-280/mt cfr Qasim on Thursday. 



Bangladesh steel mills remained away from bulk trades as they hold enough inventories of ferrous scrap in hand. Major mills are still operating at 40-50pc of their capacity and downstream demand remained subdued. 

Bangladesh Steel Manufacturers Association (BSMA) has sought tax benefits for the steel industry from the government from the upcoming budget. The government has recently announced a package of BDT1,000mn ($12mn) for steelmakers to help them tide over the economic impact of COVID-19-related shutdowns. 

The daily Davis Index for containerised shredded settled at $302/mt cfr Chattogram, up by $2/mt from Wednesday. Offers for shredded were flat in the range of $305-310/mt cfr Chattogram with a few trades reported at $300/mt cfr Chattogram.  

The daily index for Latin America-origin HMS 1&2 (80:20) inched up by $3/mt to $278/mt cfr Chattogram. Offers for Brazilian scrap were at $280/mt cfr Chattogram.

Trades for Central and South American HMS 1&2 (80:20) concluded at $260-265/mt cfr Chattogram. The index for US-origin HMS 1&2 (80:20) settled at $285/mt cfr Chattogram, unchanged from Wednesday. Some yards offered the grade at $290/mt cfr Chattogram. 

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