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

Imported containerised shredded scrap offers to South Asia jumped up on Monday amid tight supply. Buyers in Bangladesh chased the materials fearing a further rise in prices. However, Pakistani mills paused trade amid falling domestic scrap prices. 



The daily Davis Index for containerized shredded, Monday, settled at $333.75/mt cfr Chattogram up by $2.32/mt from Friday. New offers were at $340/mt cfr Chattogram on Monday amid a scarce supply of shredded. A few trades by Dhaka-based mills were reported at $330-335/mt cfr Chattogram. P&S scrap traded at $335-340/mt cfr Chattogram from South America and the UK.


The index for containerized US-origin HMS 1&2 (80:20), Monday, settled at $321.67/mt cfr Chattogram, up $1.67/mt from Friday. Trades for the UK and US-origin HMS 1&2 (80:20) reported at $320-323/mt cfr Chattogram. 


In the bulk market, deals from US west coast suppliers were heard at $330/mt cfr Chattogram, however, no confirmation was received till the time of publication. Some traders opined that it could be a rumour as buyers have enough inventories in hand.


The daily index for Latin America-origin HMS 1&2 (80:20) settled at $315/mt cfr Chattogram, up $1/mt from Friday. South American yards sold HMS #1 at $320-322/mt cfr Chattogram. While buying interest was still around $315/mt cfr Chattogram. 


Domestic steel demand in Bangladesh is yet to return to pre-COVID-19 levels, but end-user demand has started picking up. Major steelmakers in Chattogram offered billets at BDT41,000-41,500/mt ($483-489/mt)ex-works Chattogram. Large steel producers like BSRM and AKS are offering rebar at BDT56,000-57,000/mt and BDT55,000/mt ex-works, respectively, with the index settling at BDT55,750/mt ex-works. 


Dhaka-based finished steel producers sold rebars at BDT49,000/mt ex-works, at prices up by BDT500-1,000/mt from the prior week. 

Domestic shipbreaking scrap equivalent to P&S traded at BDT31,500/mt ex-yard Chattogram, down by BDT500/mt. HMS 1&2 (80:20) was priced at BDT29,000-29,500/mt ex-yard Chattogram. 



A gradual resumption in mega infrastructure projects is likely to improve steel demand in the country. Trading on Monday was supported by indications of a firm scrap market in November.


The daily Davis Index for containerized shredded, Monday, rose further by $0.45/mt to settle at $325.45/mt cfr Port Qasim. Trades for UK-origin shredded in containers were heard at $325-326/mt cfr Port Qasim. Most offers from EU/UK-origin were around $327-328/mt cfr Port Qasim on Monday following strengthening global cues.


Containers of Dubai-origin #1 HMS traded at $313-315/mt cfr Port Qasim. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $311/mt cfr Port Qasim, unchanged from Wednesday. Mills chose to buy shredded over HMS scrap this week. The index for US-origin HMS 1&2 (80:20) settled at $313.5/mt cfr Port Qasim, up by $2.36/mt from Friday. Offers from South American ferrous scrap suppliers were at $310/mt cfr Qasim. 


In the domestic market, Bala billet prices recovered to PKR90,000-90,500/mt ($562-565/mt) ex-works Punjab amid recovering demand. Leading Karachi-based producers offered rebar at PKR109,000-110,000/mt ex-works, offering a discount upto PKR1,000/mt to encourage buyers. In Punjab, G-60 rebar prices sold at PKR108,500-109,000/mt ex-works, down by PKR500-1,000/mt from the prior week.


In Lahore, the local government could ask some secondary steel mills, especially those without emission control machinery, to pause production for a few weeks due to heavy smog. This dip in production could impact domestic ferrous scrap prices. Domestic Pure Q toke scrap, equivalent to shredded sold at PKR68,000-68,500/mt del Lahore mill, down PKR500/mt from the last week. 

($1= PKR160.41; BDT84.93)


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