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

Pakistan ferrous scrap importers slow trades

Ferrous scrap importers in Pakistan slowed their purchases with expectations of demand rise on the back of construction package fizzling out. Banks have lowered their working hours amid extension of national lockdown till May 4 and the ongoing Ramadan month. Industry associations including PALSP and PSMA have urged the government to refrain from lowering taxes on imports of billets, rebar and at the same time nullify import duty on ferrous scrap.  

They have also urged the government to exempt port charges and support the traders’ fraternity which is reeling under heavy losses. Most steelmakers stayed away scrap market as monsoons in the next few months will slow down construction activity.  

The daily Davis Index for containerised shredded settled at $272/mt cfr Port Qasim on Thursday, down by $3/mt from the prior week. Trades for containerised shredded concluded at $270-275/mt cfr Qasim. Bids then fell to $265-267/mt cfr Qasim countering offers of $270-275/mt cfr Qasim in the latter half. The Davis Index for Dubai-origin containerised HMS 1&2 (80:20) from UAE traded at $253/mt cfr Qasim, down by $5/mt from the prior week.  

 

Bangladesh mills away from Fe scrap trades

Bangladesh steel mills remained away from bulk ferrous scrap purchases for yet another week. A few leading steelmakers have resumed production activities, although many small-scale steelmakers remained shut. Amid the lockdown till May 5, banks are working only for 2 hours with limited staff and infrastructure projects are on hold causing difficulties for importers.

In the container market, the daily Davis Index for containerised shredded scrap settled at $278/mt cfr Chattogram on Tuesday, down by $1/mt. Early this week, leading steelmakers remained away from buying activity. A mill placed bids for containerised shredded at $265-267/mt cfr Chattogram with offers at $285-290/mt cfr Chattogram.

The Davis Index for containerised P&S settled at $280/mt cfr Chattogram, down $1/mt from the prior week. The daily Davis Index for US-origin containerised HMS 1&2 (80:20) rose to $260/mt cfr Chattogram, unchanged from Wednesday.

Offers for HMS 1&2 (80:20) from Latin America and Australia were at $265-270/mt cfr Chattogram on Friday. The Davis Index for Australian HMS 1&2 (80:20) settled at $263/mt cfr Chattogram, down by $5/mt from the prior week. The Davis weekly Index for Latin American HMS 1&2 (80:20) settled at $250/mt cfr Chattogram, down by $8/mt from the prior week.

Domestic shipbreaking scrap prices rose by BDT250/mt to BDT29,000/mt ex-yard Bangladesh, while rebar prices remained flat.

 

India’s imported ferrous scrap trades halted

Indian imported ferrous scrap market has been subdued for over two months. Though some mills resumed production, they were not ready for transactions and utilised stocks at hand to meet production requirements amid weakened demand.

 Major steelmakers expect construction demand to recover, however, the upcoming monsoon season in June usually witnesses limited trades. Over two months of containers backlog remains piled up at ports.

 The daily Davis Index for containerised shredded settled at $260/mt cfr Nhava Sheva on Thursday, down by $5/mt from the Wednesday. Shredded in containers was offered at $260-265/mt cfr Nhava Sheva.

 The daily Davis Index for containerised HMS 1&2 (80:20) of UAE-origin settled at $250/mt cfr Nhava Sheva on Thursday, down by $3/mt from Wednesday. But now there are no fresh offers from the UAE, which remains under lockdown.

Bids for Brazilian HMS 1&2 (80:20) were flat at $245-250/mt cfr Nhava Sheva. Australia-origin HMS 1&2 (80:20) traded at $250-255/mt cfr Nhava Sheva and Mundra, down by $5/mt from the prior week.

Indian steelmakers actively offered billets in export markets to liquidate finished steel inventories. Prices remained range-bound at $370-380/mt cfr Taiwan and China.

 

($1=Rs75.67; PKR161.49; BDT84.91)

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