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

Imported shredded scrap prices in South Asia increased as Indian buyers continued to accept higher offers to secure material amid a shortage of scrap in the domestic market.  


The daily Davis Index for containerized shredded Wednesday rose by $0.42/mt to settle at $297.19/mt cfr India subcontinent from Tuesday. Indications for shredded scrap remained firm amid limited supply, however, buying was thin ahead of Eid holidays in Pakistan, the UAE, Bangladesh and Indonesia. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $279.57/mt cfr India subcontinent, up by $0.39/mt from Tuesday.  


In Turkey, major steel mills raised their bids for bulk ferrous scrap purchase on improved finished steel prices and as suppliers refused to lower offers. The Davis Index for US-origin HMS 1&2 (80:20) Wednesday settled at $272.5/mt cfr Turkey, up by $1.2/mt from a day ago and by around $5/mt from July 22.  



Pakistani scrap importers slowed after buying aggressively for the past two weeks in containers. Heavy rains and Eid holidays hampered steel sentiments in the country as buyers wait for more clarity from the global markets. However, offers trended up.  

Scrap importers anticipate steel demand to pick up post Eid holidays. Market will close for Eid from Friday to Monday but scrap trades are less likely to be impacted.


The Davis Index for containerized shredded settled at $300.25/mt cfr Port Qasim, up by $0.25/mt from Tuesday. Trades for US-origin shredded were at $298-300/mt cfr Qasim and trades for UK-origin shredded were reported at $300-302/mt cfr Qasim. Suppliers held offers at $305/mt cfr Qasim. A few mills refused offers over $300/mt cfr Qasim.  


The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $291.14/mt cfr Qasim, up by $1.28/mt from Tuesday. UAE-origin HMS 1&2 (80:20) traded at $290-293/mt cfr Qasim, while #1 HMS was offered at above $300/mt cfr Qasim.  

The daily index for US-origin HMS 1&2 (80:20) settled at $282.86/mt cfr Qasim, up by $0.36/mt. Trades for US-origin HMS 1&2 (80:20) were limited and flat at $280-285/mt cfr Qasim.  

In the domestic market, demand slowed ahead of Eid and prices were largely stable. Steel prices dropped marginally by PKR500/mt with commercial Bala billet priced at PKR92,000/mt ex-works Lahore, inclusive of local taxes. Domestic mixed HMS and P&S scrap sold at PKR72,0000-72,500/mt delivered Lahore mill.  



Imported ferrous scrap market gained momentum with active enquiries this week. However, most mills expect imported scrap prices to soften post Eid amid limited downstream demand. Strong demand for billets in the export markets continues to help Indian mills. A major supplier in the South sold bulk volumes of billets through a tender at $398/mt fob India to a Chinese buyer. Mills expect billet exports to continue amid stable demand from Southeast Asian buyers supported by short deliveries times and lower ocean freight charges.


The daily Davis Index for containerized shredded Wednesday settled at $295/mt cfr Nhava Sheva from the prior day. Offers for US-origin containerized shredded were at $295-300/mt cfr Nhava Sheva against bids of $288-290/mt cfr Nhava Sheva depending on origins. Mills could raise their bids to procure materials this week, said traders.

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $280/mt cfr Nhava Sheva, up by $2.5/mt from Tuesday. Most UAE suppliers, however, preferred to sell material to Pakistan at higher prices. The expected shortage of domestic scrap could lead to more imports in the next few days.  

A few trades for Brazilian and Australian HMS 1&2 (80:20) closed at $270-275/mt cfr Mundra and Nhava Sheva. UK-origin scrap traded at $265/mt cfr Qasim.  

The daily index for US-origin HMS 1&2 (80:20) settled at $275.42/mt cfr Nhava Sheva, up by $0.42/mt from Friday. Suppliers on Wednesday were offering the grade at $275-280/mt cfr Nhava Sheva.  



Bangladesh’s steel market continued to be challenged by heavy rains and floods. Very limited trades concluded on Wednesday as importers remained cautious about bookings ahead of Eid holidays.  

Prices for domestic billet and rebar remained subdued. Billets offers stayed flat at BDT38,000-39,000/mt ex-works while rebar offers were at BDT49,000-50,000/mt ex-yards after discounts.  

Higher prices for scrapped ships arriving to Bangladeshi shores lifted domestic scrap offers this week. Domestic shipbreaking scrap traded at BDT24,000/mt ex-yards Chattogram. Most buyers preferred domestic scrap. Indian sponge iron offers too remain high at $260/mt cfr Chattogram.  

The Davis Index for containerized shredded settled at $306/mt cfr Chattogram, up by $0.13mt from Tuesday. Offers for shredded from leading UK yards remained at $305-310/mt cfr Chattogram, but buyers refused higher offers. No major deals in containers were heard on Wednesday.  

The index for Latin America-origin HMS 1&2 (80:20) settled at $286.25/mt cfr Chattogram, up from $285/mt on Tuesday. Offers for #1 HMS from Brazil, Chile, and Europe were at $285-290/mt cfr Chattogram. Bangladeshi mills were interested in $275-280/mt cfr Chattogram for the grade, but no trades concluded.  

The index for US-origin HMS 1&2 (80:20) Tuesday settled at $294/mt cfr Chattogram, up by $0.43/mt cfr Chattogram on Wednesday amid limited trades at $290-295/mt cfr Chattogram.  


($1=Rs74.72; PKR167.19; BDT84.89)


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