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

Imported ferrous scrap prices in South Asia were mixed on Tuesday amid sluggish demand and an expected correction in scrap prices. A slight rise in Turkish prices could limit offers to South Asia as suppliers turn to other markets. However, Bangladesh’s market was upbeat with high offers in shipbreaking and a recovery in steel demand from infrastructure projects. Mills increased enquiries for imported ferrous scrap in Bangladesh while in Pakistan, domestic steel prices remained low resulting in a decline in bids from major mills for imported scrap. 


In Turkey, US-origin HMS 1&2 (80:20) bulk prices rose by $1.09/mt to $280.89/mt cfr Turkey on Monday. Despite domestic scrap prices dropping by $5-8/mt in Turkey, finished steel prices are likely to move up on strong domestic markets in the US and Europe in September.    



Pakistani ferrous scrap importers did not respond to imported scrap trades amid less supportive domestic fundamentals and cash constraints. Domestic steel prices are expected to correct further as production has reached 100pc and prices surged due to COVID-19 related issues. Imported scrap demand too, is likely to stay only as per requirements. As the nation will observe 10 days of Muharram, it is expected to keep business low. Buyers opted lower priced material.


The Davis Index for containerized shredded settled at $309/mt cfr Port Qasim, up by $1.14/mt from Monday. Trades for the Europe-origin shredded were at $305-307/mt cfr Port Qasim. Offers from UK supplier yards, however, remained stable for the grade at $310-312//mt cfr Port Qasim on Tuesday with most steel mills in Karachi looking for shredded at $305/mt cfr Qasim.

In the domestic market, Bala billet prices were in the range PKR91,000-91,500/mt ex-works Punjab with shredded scrap Q toke traded at PKR71,500-72,000/mt ex works Lahore stable from Monday.  


The Davis Index for HMS 1&2 (80:20) of UAE-origin Monday settled at $292.5/mt cfr Port Qasim, down by $2.5/mt from Monday. Trades for UAE-origin mixed #1 HMS and P&S sarya scrap were at $298-300/mt cfr Port Qasim on Tuesday. The index for US-origin HMS 1&2 (80:20) settled at $289/mt cfr Port Qasim, down by $1/mt from Friday. Trades were reported at the index price while offers were at $295/mt cfr Port Qasim.  



Bangladesh’s imported scrap market witnessed demand recovery but no major trades were reported in containers market. Major mills continued booking bulk cargoes for their regular needs. The government is taking all efforts to tackle the situation of COVID-19 and incentives have been announced to bring economic activities on track. Most mills are now operation at 90-100pc capacities resulting in speedy consumption of raw materials. The impact of heavy rains and floods has subsided, and production activity is now expected to pick-up.


The Davis Index for containerized shredded settled at $318/mt cfr Chattogram, up by $1.07/mt from Friday. Offers for shredded from UK yards were at $325-330/mt cfr Chattogram. A few trades concluded around index price while a few yards were able to get $330/mt cfr Chattogram on limited supply. Supply from Australia and New Zealand was limited.  


The index for Latin America-origin HMS 1&2 (80:20) settled at $292.7/mt cfr Chattogram, down by $2.27/mt from Monday. A few containers traded at near-index price, with bids reported at $285-290/mt cfr Chattogram On Tuesday, offers for #1 HMS from Brazil, Chile, and Europe were at $300/mt cfr Chattogram, with bids at $295/mt cfr Chattogram from small scale furnaces.  


The index for US-origin HMS 1&2 (80:20) was at $303/mt cfr Chattogram, down by $1/mt from Monday. Sellers offered HMS 1&2 (80:20) in the range $305-307/mt cfr Chattogram, while buyers were looking at $300/mt cfr Chattogram.  


In the domestic market, billet prices were BDT40,500-41,000/mt ex works for square billets. On the other hand, a few were offering billets at BDT42,000/mt ex works. Many are waiting for rebar prices to rise as, after discounts, small furnaces are offering rebar at BDT49,000/mt ex-works.


In shipbreaking, offers for containers and tankers jumped to $335-350/ldt against the last trades at $325/ldt indicating Bangladesh domestic prices are rising on higher inputs costs in the coming days, a steel mill owner said. A bulk carrier was offered at $315/ldt with no buyers on Tuesday. Domestic ferrous scrap was offered at BDT30,000-30,500/mt delivered mill on Tuesday.  


($1= PKR168.46; BDT84.78)



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