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

Imported ferrous scrap trades continued to gain pace in South Asia despite sluggish domestic markets. Mills, especially in Pakistan, started booking containers, hoping to restock before prices climb further. Most steelmakers believe the resumption of infrastructural projects will give finished steel trades and prices a lift in the coming days. 

In Turkey, the daily Davis Index for US-origin HMS 1&2 (80:20) slid by $0.17/mt to $289.50/mt cfr on Tuesday amid thin trades.



In 10 days, large steelmakers have booked over 30,000mt of imported scrap, including some prompt delivery shipments amid depleting inventories and limited domestic scrap availability. A rise in the number of inquiries increased asking prices by $3-5/mt. 

The daily Davis Index for containerized shredded, Wednesday, rose by $0.58/mt to settle at $315.14/mt cfr Port Qasim. Several containers for UK-origin shredded traded at $314-315/mt cfr Port Qasim despite offers of $317-320/mt cfr Port Qasim on Wednesday. Offer prices from the US and European yards were at $313-315/mt cfr Port Qasim. 

Dubai-origin #1 HMS scrap in containers traded at $308-310/mt cfr Port Qasim. Offers for PNS sarya scrap were at $310-315/mt cfr. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $301/mt cfr Port Qasim, up by $2/mt from Tuesday. Mills chose to buy shredded over HMS scrap this week.


The index for US-origin HMS 1&2 (80:20) settled at $302.29/mt cfr Port Qasim, up by $2.04/mt from Tuesday. In the domestic market, Bala billet prices were flat on weak demand at PKR90,000-90,200/mt ex-works Punjab. 

Domestic ferrous scrap prices decline

Domestic Pure Q toke scrap, equivalent to shredded sold at PKR69,000-69,500/mt del Lahore mill, down by PKR1000/mt from the prior day. Most mills preferred imported scrap over domestic material due to the appreciation of Pakistani currency to PKR161.3 against $1 from PKR162.5 last week. Leading rebar producers in Karachi offered material at PKR110,000-111,000/mt ex-works. 



Bangladeshi mills stayed away from the bulk market and purchased scrap in containers on a need basis. A mill in Chattogram, however, resorted to active trading as it gears to commence production at a new facility. The mill, after purchasing cargoes from Australia and Japan last week, is still keen on booking containers.  


The Davis Index for containerized shredded, Wednesday, settled at $324.5/mt cfr Chattogram down by $0.43/mt. Buyers largely stayed away from containerized shredded, but those interested, bid at $318-320/mt cfr Chattogram. Suppliers, however, refused to lower their asking prices below $325-330/mt cfr Chattogram citing a supply crunch.

In the bulk market, West Coast US-origin HMS 1&2 (80:20) offers were at $315-320/mt cfr Chattogram.Japanese bulk scrap suppliers 

stayed away from Bangladeshi markets. 


The daily index for containerized US-origin HMS 1&2 (80:20), Wednesday, settled at $313/mt cfr Chattogram, down by $1.75/mt due to thinned trading. Declining domestic steel prices kept most buyers focused on lower-priced material. Some trades for Australia, UK, and US-origin HMS scrap were at $312-315/mt cfr Chattogram. 

The index for Latin America-origin HMS 1&2 (80:20) settled at $309/mt cfr Chattogram, unchanged from Tuesday. South American yards sold HMS #1 and HMS 1&2 (90:10) at $315/mt cfr Chattogram on Wednesday since buyers showed a willingness to raise bids and match present offer levels. 


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, unchanged from late last week. Dhaka-based finished steel producers sold rebars at BDT48,500/mt ex-works, down BDT500/mt from the prior week. Most mills struggled to stay profitable and may curtail production and have even cancelled discounts on rebar and billets. Activities at many infrastructure projects are yet to return to pre-COVID-19 levels. 


($1= PKR162.05; BDT84.8)


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