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

Imported shredded scrap prices in South Asia increased as buyers’ accepted higher offers to secure material amid a shortage of scrap in the domestic market. The daily Davis Index for containerized shredded Monday rose by $2.38/mt to settle at $295.35/mt cfr India subcontinent from Friday. Most yards remained bullish and held back materials on hopes of a further rise in prices over the week.

  

The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $277.01/mt cfr India subcontinent, up by $3.75/mt from $273.26/mt cfr. In Turkey, major steel mills raised their bids for bulk ferrous scrap purchase on improving finished steel prices and as suppliers refused to offer scrap at lower prices. The Davis Index for US-origin HMS 1&2 (80:20) on Friday had settled at $271/mt cfr Turkey, up by $0.02/mt from a day ago and by around $18/mt from July 10. 

 

Pakistan

Pakistani ferrous scrap importers remained active as the economy picked up amid lower COVID-19 infections in the country. However, authorities have extended smart lockdown restrictions for another 10 days in Punjab. Scrap importers anticipate steel demand to pick up post Eid holidays this week. Trades for imported scrap are, however, less likely to be impacted. 

 

The Davis Index for containerized shredded settled at $298.75/mt cfr Port Qasim Monday, up by $2.75/mt from Friday. Trades for US-origin shredded were at $295-300/mt cfr Qasim and trades for UK-origin shredded were reported at $298-303/mt cfr Qasim. Offers for the grade on Monday were at $300-305/mt cfr Qasim with a few mills refusing offers over $300/mt cfr Qasim. 

 

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $288.93/mt cfr Qasim, up by $2.93/mt from Friday. Trades for UAE-origin #1 HMS and P&S mixed were in the range of $295-298/mt cfr Qasim. However, buyers were cautious with limited volumes materialising into deals amid a ban on ferrous scrap exports. 

 

Trades for European and Brazilian HMS 1&2 (80:20) were at $285/mt cfr Qasim, up by $10/mt from the prior week. Trades for Brazilian Busheling reported at $310/mt cfr Qasim while UAE-origin P&S traded at $305/mt cfr Qasim. 

 

The daily index for US-origin HMS 1&2 (80:20) settled at $277.5/mt cfr Qasim, up by $1.43/mt. Trades for US-origin HMS 1&2 (80:20) were heard at $270-275/mt cfr Qasim. 

 

Prices for commercial Bala billet prices were PKR92,500-93,000/mt ex-works Lahore, inclusive of local taxes, marginally down as major mills raised output. Trades for domestic mixed HMS and P&S scrap were reported at PKR72,5000-73,000/mt delivered Lahore mill, following global cue.  

 

India 

Indian imported ferrous scrap trades gained momentum with active enquiries this week. Domestic steel and other alternative prices increased by Rs300-500/mt in the past couple of days amid an indication of supply shortage and recovery in steel demand.

 

The daily Davis Index for containerized shredded Friday settled at $292.75/mt cfr Nhava Sheva from the prior day. Offers for US-origin containerized shredded were at $295-305/mt cfr Nhava Sheva on Monday depending on origins, but mills refrained from bidding above $290/mt cfr Nhava Sheva. It is likely that mills would raise their bids to procure materials this week. 

 

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $275/mt cfr Nhava Sheva, up by $3.75/mt from Friday. Most UAE suppliers, however, preferred to sell material to Pakistan for higher prices. 

A few trades for Brazilian and Australian HMS 1&2 (80:20) were closed at $270-275/mt cfr Mundra and Nhava Sheva on Monday. 

The daily index for US-origin HMS 1&2 (80:20) settled at $273.75/mt cfr Nhava Sheva, up by $2.81/mt from Friday. Suppliers are offering the grade at $275-280/mt cfr Nhava Sheva. 

 

Bangladesh 

Bangladesh domestic steel market situation remained changed from Friday with no major deals. Prices for domestic billet and rebar remained hurt by weak demand. Billets were offered at BDT38,000-39,000/mt ex-works while rebar was offered at BDT49,000-50,000/mt ex-yards by small furnaces after discounts. 

 

Oversupply from ship recycling activities in Bangladesh pulled domestic ferrous scrap prices further down by BDT1,000-1,500/mt. Domestic shipbreaking scrap traded at BDT22,500-23,000/mt ex-yards Chattogram ($265-271/mt). Indian sponge iron suppliers have turned optimistic with the commissioning of a new container carrier railway route between India and Bangladesh border which could save costs. 

 

The Davis Index for containerized shredded settled at $303.75/mt cfr Chattogram, up by $3.75/mt from Friday. Steel mills bought shredded from Australia and New Zealand at $290-292/mt cfr Chattogram priced lower than the UK or US-origin scrap. Offers for shredded from leading UK yards remained at $300-305/mt cfr Chattogram. 

 

The index for Latin America-origin HMS 1&2 (80:20) settled at $282.5/mt cfr Chattogram, up from $279.64/mt on Friday. Offers for #1 HMS from Brazil, Chile, and Europe were at $285-290/mt cfr Chattogram. Brazilian traders shifted their focus from Bangladesh to Pakistani and Indian markets from where they expect both, higher volumes and prices. 

 

The index for US-origin HMS 1&2 (80:20) Monday settled at $292/mt cfr Chattogram, up from $288.13/mt cfr Chattogram on Friday, however, hardly any trade was reported. Trades late last week were in the range of $285-290/mt cfr Chattogram. 

 

($1=Rs74.76; PKR166.88; BDT84.81)

 

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