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

Imported ferrous scrap offers in Bangladesh continued to rise following global cues. After the Eid festival, increased purchases in Turkey, Pakistan, and Indonesia are expected to elevate offers further. Trading, however, was slow with mills buying material only for their immediate melt requirements. The Bangladeshi government has extended its lockdown till May 16 from the earlier May 5. Logistical challenges on seas and domestic transportation routes have also dampened sentiment. Leading steelmakers have started diverting their oxygen supply for medical like their Indian counterparts. Production could thus decline in the coming days. 


Following a rise in bulk prices in Turkey, offers in South Asia showed an uptick. Only a few deals for imported scrap were heard in Chattogram as the availability of domestic scrap tightened.

The daily Davis Index for containerized shredded, Monday, settled at $492.5/mt cfr Chattogram up $2.5/mt from Thursday. Offers for UK-origin containerized shredded were above $495-500/mt cfr Chattogram on Monday. Mills had stayed away from the market as they were unable to find material at their target prices. This week, however, they resumed trades, albeit in limited volumes. 

The index for HMS 1&2 (80:20) from Latin America settled at $469/mt cfr Chattogram up by $2/mt from Thursday. Most Latin American yards kept their offers for HMS 1&2 (80:20) above $470-475/mt cfr Chattogram on higher freight charges on Monday. 


The daily indexes for US-origin, UK-origin, and Australia-origin containerized HMS 1&2 (80:20) moved up to $470/mt, $467/mt, and $474/mt cfr Chattogram, up by $1.2/mt, $1/mt, and $1/mt, respectively, from Thursday. 

Supply for high-grade scrap has dipped as an acute shortage of chips has forced global automakers to shut down. Containerized busheling was offered at prices above $520/mt cfr Chattogram on Monday from the UK origin, while Australian origin booked at $510/mt cfr Chattogram.   


Domestic steel demand under pressure 

Despite slow trading, mills are still targeting another price hike on elevated input costs in Bangladesh.
Chinese steel prices increased after the announcement of rebate cancellation on exports, which could keep global steel prices lifted in the near future.  


Shipbreaking melting scrap equivalent to P&S traded at BDT47,500/mt ex-yards, with some keeping offers at BDT48,000/mt ex-yards. Domestic HMS 1&2 (80:20) was at BDT46,000/mt ex-yard Chattogram, up BDT250/mt from Thursday. Trades for 16mm ship plates were heard at prices above BDT55,000/mt ex-yards.


Billet deals dipped after offers rose by BDT500/mt from last week to BDT61,000-61,500/mt ex-works. 

For shipbreakers, scrapped ships were offered in the range of $510-530/ldt cnf Chattogram depending on origin and vessel type. Recyclers were not keen on these levels as they are unsure of the demand environment in the domestic market. Amid cash constraints, many ferrous scrap buyers have stepped back and may resume trades after the peak Monsoon activity ends. Demand could be under pressure for the next two months. 

Large steelmakers kept their offers for rebar unchanged above BDT70,500-71,000/mt ex-works. 

For medium-scale mills in Dhaka offered rebar in the range of BDT67,000-67,500/mt ex-works. Dhaka-based steel mills raised offers in line with large steelmakers’ offers amid high input costs. 




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