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

Mills in Bangladesh ramped up steel production this week. Easing of the nationwide lockdown also allowed retail distributors to resume business. Finished steel sales remained slow but could pick up as monsoon retreats. Steel sale prices increased by BDT1,000-2,000/mt which boosted inquiries for imported raw materials. 


Imported shredded prices in Bangladesh trended up for the third consecutive day. The daily Davis Index for containerized shredded, Friday, settled at $548.75/mt cfr Chattogram, up by $2.25/mt. Deals for shredded from the UK/EU were heard in the range of $548-550/mt cfr Chattogram amid an improvement in demand.  


As bids from India and Pakistan increase, mills in Bangladesh must resume trades at higher prices, said traders. International ferrous scrap markets could rebound as demand recovers in South Asia. 


Large-scale mills opted for a few bulk bookings in the previous weeks to fulfil immediate requirements for HMS 1&2 (80:20) from the US WC at $540-545/mt cfr Chattogram which remained unchanged over this week. 


The daily index for US-origin containerized HMS 1&2 (80:20) settled at $515/mt cfr Chattogram, down $3/mt and the index dropped $2.5/mt, from the prior week. Increasing availability of HMS in most supplier countries have weighed prices down, widening the gap between HMS and prime grades. A few buyers booked HMS 1&2 (80:20) at $510/mt cfr Chattogram from UK.  


The indexes for UK-origin and Australia-origin HMS 1&2 (80:20) settled at $510/mt and $520/mt cfr Chattogram, respectively, down by $2/mt from Aug 6.  


In recent trades, #1 HMS from Australia were heard at $520/mt cfr and from the UAE mixed P&S traded at $530/mt cfr Chattogram


The Davis Index for P&S 5ft recovered by $2/mt to settle at $555/mt cfr, from last Friday, while the index for #1 busheling was at $568/mt cfr Chattogram, down by $7/mt. Singapore-origin busheling was sold at $562/mt cfr Chattogram, in small quantities. 


The daily Davis Index for HMS 1&2 (80:20) from Latin America remained unchanged at $503/mt cfr Chattogram. The index dropped by $4/mt, as compared to last Friday. Deals were reported at $500-505/mt cfr Chattogram as global prices softened. Traders are witnessing a shortage of empty containers for exports. 


Buyers in the domestic market remained unwilling to import sponge iron from India where prices have surged to Rs35,000/mt ($471/mt) ex works Raipur, thus making it less competitive for imports.


The weekly index for ship scrap equivalent to P&S settled at BDT50,500/mt ($595/mt) ex-yards, up BDT750/mt. A rise in ship vessels prices, which hit above $620-630/ldt, made recyclers raise domestic rolling and melting scrap offers. For ship plates, asking rates were stable from a week prior at BDT58,000/mt ex yards. The weekly index for domestic HMS 1&2 (80:20) was at BDT46,500/mt ex-yards Chattogram, up by BDT250/mt on Friday.


The weekly index for rebar from large-scale mills rose by BDT1,500/mt to BDT73,000/mt ex-works. The weekly Davis Index for rebar by medium scale was at BDT68,000/mt ex-works, up by BDT1,250/mt, and for small-scale mills, the index settled at BDT63,250/mt ex-works, up by BDT1,250/mt.  


The weekly index for billet was at BDT61,500/mt ex-works, up BDT750/mt.


Most participants expect a hike in domestic rebar and billet prices amid high input costs, while supply crunch for domestic scrap continued as demolition rates declined. 



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