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

Bangladeshi steel mills are expected to resume trades for imported scrap amid low inventory and tight domestic scrap supply. But the country’s recovery from the COVID-19 pandemic-induced slowdown has been uneven. Since March, the government has unveiled 21 stimulus packages worth approximately BDT1,200bn ($14bn), which is about 4.5pc of Bangladesh’s GDP. With access to the stimulus packages, large mills are expected to recover faster in the coming weeks. 


The daily Davis Index for containerized shredded, Monday, settled at $477.5/mt cfr Chattogram, up by $1.21/mt from Dec 31. Offers for containerized shredded from the UK and US yards ranged $485-500/mt cfr Chattogram with no major deals heard.


The Davis Index for containerized HMS 1&2 (80:20) of the US-origin and Latin America-origin settled at $466.25/mt and $465/mt cfr Chattogram, rising by $1/mt from the prior Thursday. US suppliers are anticipating strong domestic demand in January and yard owners are hesitant to offer any material for exports. Offers for HMS #1 from Chile heard at around $465-475/mt cfr Chattogram on Monday.


Chinese books Japanese scrap 

In the bulk market, there were no offers from Japan and Australia on account of holidays. Most Japanese suppliers are actively offering higher-grade scrap to Chinese buyers on Monday to fetch better prices compared to Bangladeshi mills. Offers for HMS 1&2 (80:20) in bulk rose to $510-515/mt cfr Chattogram.  


The opening of Chinese markets for ferrous scrap imports under the new policy encouraged Chinese mills to book materials from Japan. A small bulk deal for 3,000mt of Japanese P&S (HS grade) heard at $480-500/mt cfr Shanghai, China.


Domestic steel prices firmed in Bangladesh following global cues. Ship scrap equivalent to P&S offered at BDT42,000-42,500/mt ex-works. Domestic HMS 1&2 (80:20) was stable at BDT41,000-41,500/mt ex-yards Chattogram on Monday and shipbreaking plates traded at BDT47,000-47,500/mt ex-yards. In the shipbreaking market, offers rose to $440-450/mt cfr, but yards are yet to increase booking volumes.


Billet prices in Bangladesh remained flat at BDT51,000-52,000/mt ex-works Chattogram on Monday. Mills saw strong resistance for rebar priced above BDT60,000/mt ex-works despite which offers for rebar rose by BDT1,000/mt to BDT66,000-67,000/mt ex-works. Large mills are targeting rebar prices of around BDT70,000/mt ex-works to maintain the spreads between scrap and rebar and to pass-on higher input costs.  


($1= BDT84.69)


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