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

Bangladeshi steel mills stayed away from the markets on Monday, the first day for renewed lockdown, as offers surged. If infections increase beyond control, the lockdown could be extended further keeping trades suspended. Most buyers have already booked material or have enough scrap inventory for their immediate needs. There is limited scope for active demand this week. 


The daily Davis Index for containerized shredded, Monday, settled at $473.75/mt cfr Chattogram, up by $5/mt from Friday. Thin volume trades for UK-origin containerized shredded sold at $470-475/mt cfr Chattogram, while offers rose up to $480/mt cfr on Monday. The containerized freight charges on the New York to Chattogram route rose as high as $85/mt, up $10/mt from the prior week, according to Davis Index data. 


Sharply elevated Indian Sponge iron export offers amid tight supply and active domestic demand, reduced trades. Indian Sponge iron export offers were $415-420/mt cpt Benapole or over $425-430/mt cfr Chattogram driving steel mills to focus on the imported scrap market.


The daily index for HMS 1&2 (80:20) from Latin America settled at $454/mt cfr Chattogram, up $1/mt. Offers increased to $455-460/mt cfr Chattogram in the latter half of the week following improved demand.


Indices for US-origin, UK-origin and Australia-origin containerized HMS 1&2 (80:20) settled at $463/mt, $450/mt and $460/mt cfr Chattogram, respectively, up $3-5/mt from Friday. 


In the bulk market, offers for mixed cargo from the US West Coast heard at $475-480/mt cfr Chattogram while full shredded was above $485/mt cfr Chattogram. Japanese suppliers, too, held offers high amid a $10-15/mt jump in freight rates for all seaborne destinations including Bangladesh. Offers for Busheling jumped above $500/mt cfr Chattogram on Monday. 


Domestic steel halts rally 

Higher steel prices met resistance as many end-users expect slow demand during Ramadan and monsoons which could pull prices down by BDT5,000/mt.  


Amid stable supply from shipbreaking operations, offers for ship scrap equivalent to P&S were BDT44,500-45,000/mt ex-works. Domestic melting HMS 1&2 (80:20) was offered at BDT44,000/mt ex-yard Chattogram on Monday. 


All large steelmakers kept asking rates for rebar stable in the range BDT68,000-69,000/mt ex-works post price hike announced last week. Rebar from medium-scale remained at BDT65,000-66,000/mt ex-works. Prices 16mm ship plate offers adjusted to BDT53,500-54,000/mt ex-yards.


Domestic billet prices rose to BDT56,500-57,000/mt ex-works Chattogram amid high imported scrap prices in Bangladesh. Offers were up BDT1,500-2,000/mt from late last week. Southeast Asian billet offers were above $640-650/mt cfr amid high freight charges.

For shipbreakers, imported scrapped vessels prices were at $490-500/ldt cfr Chattogram.




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