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

After booking considerable volumes of ferrous scrap last week, mills in Bangladesh slowed down purchases this week.

Domestic billet and rebar prices have also failed to rise with low end-user demand. Mills are still ramping up their production and preferred lower-priced domestic scrap. 


In the bulk market, a US West Coast supplier sold 32,000mt shredded at $270-275/mt cfr Chattogram. Offers from yards from the region for HMS 1&2 (80:20) were at $275/mt cfr and shredded at $280/mt cfr Chattogram on Friday. Japanese ferrous scrap prices also increased this week following global cues. 


The Davis Index for containerized shredded, Friday, settled unchanged from Thursday at $295/mt cfr Chattogram but was up by $3/mt from the prior week. Davis Index heard trades for containerized shredded from the UK at $295/mt cfr Chattogram early in the week. Offers subsequently rose to $300/mt cfr Chattogram late in the week. A few trades for Brazil and New Zealand- origin shredded scrap were at $285-290/mt cfr Chattogram.


Indian sponge iron exporters raised their offers for Bangladeshi buyers after the sealed border between the two countries was reopened late last week. Trades were reported at $255-260/mt cfr Chattogram this week, up by $10/mt from the prior week. 

Major steelmakers including BSRM, AKS, and KSRM gave ramped up production to 70-90pc capacity and are expected to book more scrap after domestic steel demand shows signs of recovery. 


The index for US-origin HMS 1&2 (80:20) settled at $283/mt cfr Chattogram, up by $2/mt from Thursday and by $8/mt from a week ago. A few trades were reported at $270-275/mt cfr Chattogram.


The Davis Index for Latin American HMS 1&2 (80:20) settled at $275/mt cfr Chattogram, up by $2/mt from Thursday and by $10/mt from the prior Friday. Offers for #1 HMS from Brazil and Chile were at $275-280/mt cfr Chattogram with bids at $270/mt cfr Chattogram. Brazilian exporters raised offers for buyers in South Asia as steelmakers in their home country were willing to accept higher offers. 


The Davis Index for busheling settled at $308/mt cfr Chattogram, up by $3/mt from Thursday despite low demand. P&S from South America and Australia was offered at $295-300/mt cfr Chattogram with the weekly index for the grade at $295/mt cfr, up by $2/mt. 

The Davis Index for Australian HMS 1&2 (80:20) settled at $278/mt cfr Chattogram, up by $3/mt from the prior week. Trades for #1 HMS from Australia were at $280/mt cfr Chattogram.


Finished and semi-finished steel

The weekly index for domestic billet settled at BDT39,250/mt ($462/mt) ex-works Chattogram, a drop of BDT500/mt from the prior week. Small scale furnaces have gradually started resuming operations. Weak end-user demand due to the ongoing monsoons has kept trades hit. 

The weekly Davis Index for rebar from large steelmakers settled at BDT55,500/mt ex-producer, down by BDT500/mt. Dhaka-based small-scale long steel producers lowered their offered discounts to liquidate their inventories. Rebar was offered at BDT49,000-49,500/mt ex-plant, a fall of BDT1,000/mt from the prior week.


Domestic and shipbreaking scrap

Domestic ferrous scrap prices continued their downtrend due to oversupply and competitive sponge iron offers from India. The Davis Index for HMS 1&2 (80:20) settled at BDT25,500/mt inclusive of local taxes ex-yard Chattogram, down by BDT250/mt from the prior week. The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT26,500/mt ex-yard, down by BDT500/mt from the prior week. 



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