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

Amid weakening global cues, asking prices for seaborne scrap in Bangladesh declined on Thursday. But prices are still above buyers’ expectations. Elevated freight rates also impacted bookings. 


The daily Davis Index for containerized shredded, Thursday, settled at $473.75/mt cfr Chattogram, down by $2.75/mt, with trades heard at $470-475/mt cfr Chattogram. Bids then fell below $470/mt cfr Chattogram. Most buyers were away from bookings this week, but could be in the market next week.

Japanese small bulk scrap cargo offers declined by $5/mt, but are still above current bid levels. Bulk offers from the US East Coast were at $475-480//mt cfr Chattogram. 


The index for HMS 1&2 (80:20) from Latin America was at $448/mt cfr Chattogram, down $3/mt amid falling bids. Trades for LMS bundles were reported at $415/mt cfr Chattogram. Supply from seaborne markets was low forcing Bangladeshi mills to book limited tonnage of containerized scrap from Africa, Malaysia, and Singapore.


The daily Davis Index for US-origin containerized HMS 1&2 (80:20) settled at $455/mt cfr Chattogram, down by $2.5/mt. Trades for containerized HMS 1&2 (80:20) were reported in the range of $450-455/mt cfr Chattogram, down by $5/mt. 


Ending their two-day downtrend, steel prices in China recovered on Thursday. Bangladeshi mills exercised caution while securing tonnages as they are waiting for clarity on the global trend. 


To avoid losses due to still unviable seaborne scrap prices, many furnaces focused only on domestic melting and shipbreaking scrap.


Domestic scrap pauses downward trend

Supported by demand, prices for ship-breaking scrap equivalent to P&S ended their downtrend. On Thursday, the grade traded at BDT41,500-42,000/mt ex-works. Most furnaces in Dhaka negotiated for domestic HMS 1&2 (80:20) at BDT40,000/mt ex-yard Chattogram. 


On Thursday, ship plates of 16mm size were offered at BDT48,500-49,500/mt ex-yards, up BDT1,000/mt from a day ago. Supply from ship-breaking activities could increase as most yards are increasing the pace of demolition. 


In the long term, sellers are bearish ahead of Ramazan and Eid holidays in April-May. Also, ahead of monsoons in June, finished steel prices usually decline by BDT5,000-7,000/mt on weak demand. Buyers could stay away from booking large volumes in the coming days. Dhaka-based buyers who have stayed away for the last two weeks could restock before Ramadan. 


Domestic billet prices were unchanged at BDT54,500-55,500/mt ex-works Chattogram. Most government projects have delayed payment cycles resulting in cash flow issues for large mills. Large mills were thus focussing on the domestic retail market. 


Large steelmakers kept their asking rates for rebar unchanged at BDT67,000-67,500/mt ex-works, but offered discounts of BDT500-1,000/mt to boost sales. In the retail market, rebar from medium-scale mills and re-rollers traded at BDT63,000-63,500/mt ex-works. 




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