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

Bangladeshi steel mills returned to the market this week after the conclusion of Eid holidays and booked a few bulk cargoes from the US and Japan. Trades for containerized ferrous scrap though remained limited. Bookings are expected to pick up pace in October as Bangladesh receives high rains in the June-September period, which thins domestic steel demand. Containerized scrap offers remained high amid tight supply. 


Large mills inquired for imported bulk cargoes from Japan and the US. A Chattogram-based steelmaker booked a 30,000mt cargo from a West Coast US supplier with 22,000mt of shredded at $300/mt cfr Chattogram and 8,000mt of HMS 1&2 (80:20) at $295/mt cfr Chattogram. These prices are $10-15/mt lower than current market levels. Over this week, fresh offers were heard at $315/mt cfr Chattogram for shredded cargo while bids for HMS 1&2 (80:20) were at $290-295/mt cfr Chattogram. 


Few small bulk cargoes, including one with 10,000mt HMS 1&2 (50:50), traded at $290-295/mt cfr Chattogram this week compared to $285/mt cfr Chattogram price levels last week. Offers for busheling from Japan were at $320-330/mt cfr Chattogram on Friday. 


The Davis Index for containerized shredded, Friday, settled at $316.07/mt cfr Chattogram, up by $1.07/mt from Thursday and $4.82/mt from the prior week. On Friday, offers for containerized shredded from the UK were heard at $320/mt cfr Chattogram. Most Dhaka-based mills were reluctant to book material at these levels and preferred to import sponge iron from India at $285-290/mt cfr Chattogram. Sponge iron prices, however, were up by $10/mt from the prior week. 


A few trades for Australia and New Zealand-origin shredded were at $305/mt cfr Chattogram, though supply remained tight. 


The index for US-origin HMS 1&2 (80:20) settled at $303.93/mt cfr Chattogram, up by $1.43/mt from Thursday and up by $7.43/mt from a week ago, with trades at $300-305/mt cfr Chattogram.


The Davis Index for Latin American HMS 1&2 (80:20) settled at $297.5/mt cfr Chattogram, up by $2.5/mt from Thursday and by $8/mt from the prior Friday. Offers for #1 HMS from Brazil and Chile were at $305-310/mt cfr Chattogram with bids still at $295-300/mt cfr Chattogram. Brazilian suppliers were unwilling to lower their offers as steelmakers in their domestic market were buying scrap at competitive prices. The ongoing ban on scrap exports from South Africa and UAE also supported these suppliers. 


The Davis Index for busheling settled at $330/mt cfr Chattogram, up by $7/mt from the day prior week. P&S from South America and Australia was offered at $310-315/mt cfr Chattogram. The weekly index for the grade settled at $315/mt cfr, up by $7/mt. 

The Davis Index for Australian HMS 1&2 (80:20) settled at $298/mt cfr Chattogram, up by $10/mt from the prior week. Only a small tonnage of #1 HMS from Australia and Brazil traded at $295-300/mt cfr Chattogram.


Finished and semi-finished steel

The weekly index for domestic billet settled at BDT39,000/mt ($461.17/mt), up BDT500/mt from the prior Friday ex-works Chattogram. Weak end-user demand amid heavy rains and floods subdued trading activity but high imported scrap prices lifted domestic steel prices in Bangladesh. 

Major steelmakers in Chattogram kept their rebar offers firm despite weak demand on bullish indications from the global markets. Rebar was offered at BDT56,000-57,000/mt ex-Chattogram. Sales by large mills remain relatively better compared to those by small-scale steelmakers. 

The weekly Davis Index for rebar from medium steelmakers settled unchanged at BDT53,000/mt ex-producer, inclusive of VAT. Rebar by small-scale producers was offered at BDT50,000-50,500/mt ex-works, up by BDT500/mt from the prior week.


Domestic and shipbreaking scrap

The Davis Index for HMS 1&2 (80:20) settled unchanged at BDT26,000/mt ex-yards Chattogram inclusive of local taxes from the prior week. The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT27,500/mt ex-yard, up by BDT500/mt from the prior week. 




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