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

Bangladesh steel mills booked limited ferrous scrap containers. Some mills have gradually started ramping up operations but many are still waiting for clarity on the government’s stance on social distancing measures. This, mainly since COVID-19 cases are still rising. Major mills were operating at 60pc capacity compared to 40pc last week. 


A few construction projects are on the verge of completion. Once complete, the demand for billets and rebar could taper. The upcoming rainy season could slow construction activity and impact finished steel demand for another two months. 

The country’s national budget for FY21 ending June, was presented presented on Thursday. The budget, however, failed announce any measures to aid the steel industry.   

In bulk markets, suppliers raised offers following increased Turkish prices. European sellers’ offers for HMS and shredded mix cargoes were at $290-300/mt cfr Chattogram. Japanese export offers too remained bullish. 

But leading steel mills stayed away from trades as their consignments booked in March and April have only recently made it to the ports.  

Mills expect global ferrous scrap prices to fall in the next few weeks after which they could raise inquiries. 

In containers market, the Davis Index for shredded settled at $302/mt cfr Chattogram, flat from Thursday, but up by $4/mt from the prior week. Dhaka based steel mills booked shredded from yards in UK, Australia, New Zealand and Canada at $300/mt cfr Chattogram. 

The Davis Index for containerised P&S settled at $305/mt cfr Chattogram, up by $5/mt from the prior week. The UK and Italy-origin P&S traded at $305/mt cfr Chattogram mid-week.

The index for US-origin HMS 1&2 (80:20) settled at $285/mt cfr Chattogram, unchanged from Thursday but up by $5/mt from the prior week. 

The daily Davis Index for Latin American HMS 1&2 (80:20) settled at $280/mt cfr Chattogram, up by $2/mt from Thursday and by $10/mt from the prior week. Offers for #1 HMS from Brazil and Chile were at $280-285/mt cfr Chattogram with no buyers interested in those prices. The Davis Index for Australian HMS 1&2 (80:20) settled at $279/mt cfr Chattogram, up by $4/mt from the prior week. Offers, though were at $280-285/mt cfr Chattogram.

A few trades of containerised HMS 1&2 (80:20) from South America and Central America were reported at $260-265/mt cfr Chattogram. Sponge iron users and small scale induction furnaces were operating at very low capacity due to limited labour availability and sluggish demand. 


Bangladesh domestic steel prices down on weak demand 

Domestic steel prices in Bangladesh continued to drop on the back of weak demand for the third week. Trades of ferroalloys and sponge iron with India have been hit by the pandemic and supplies with refractories is drying out.

The weekly index for domestic billet settled at BDT40,000/mt ex-works Chattogram, down by BDT1,000/mt. The Davis Index for rebar from large steelmakers settled at BDT57,500/mt ex-producer, down by BDT500/mt from the prior week. Major steelmakers held on to their higher finished steel offers citing high input cost on the back of bullish global ferrous scrap prices. 

Domestic ferrous scrap moved up slightly on short supply and the Davis Index for HMS 1&2 (80:20) settled flat at BDT27,500/mt inclusive of local taxes ex-yard Chattogram from the prior week. The Davis Index for shipbreaking scrap equivalent to P&S settled at BDT28,500/mt ex-yard, also flat from the prior week. 




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