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

Over 12,000mt of HMS 1&2 (80:20) from the UK and Australia traded in the range $457-465/mt cfr Chattogram over this week indicating a few mills continued imports as usual to cater to post-Eid demand in Bangladesh.  


The daily indexes for US-origin, UK-origin, and Australia-origin containerized HMS 1&2 (80:20) moved up to $462.5/mt, $457/mt, and $465/mt cfr Chattogram. UK origin HMS offers recorded faster growth over other origins following the depreciation of the British pound against the US dollar.  


The daily Davis Index for containerized shredded, Thursday, rebounded $3.25/mt from Wednesday to settle at $478.75/mt cfr Chattogram. Supplier yards turned hopeful on acceptance of higher prices with Turkish bulk prices up $7/mt on Thursday. Expectations for UK-origin containerized shredded rose to $485-490/mt cfr Chattogram, while buyers bid $475-480/mt cfr Chattogram. 


Most buyers decided to hold their purchases till there is clarity on price direction. A single deal for UK origin shredded at $485/mt cfr Chattogram for prompt delivery pushed prices up further. However, most mills resisted these levels.


Many large mills are still operating at full capacity. They have managed to arrange worker’s accommodations and safety needs. On the other hand, many small to medium scale mills lowered their production to align with the weak steel demand scenario and the upcoming monsoon season.  


In the bulk market, offers for HMS 1&2 (80:20) from the US West Coast were at $490-495/mt cfr Chattogram. Japanese export offers for small bulks increased amid rising freight rates. With improved demand from Taiwan, Vietnam and Chinese buyers, Japanese sellers stayed away from Bangladeshi buyers.  


A few mills raised their bids to secure materials. The daily index for HMS 1&2 (80:20) from Latin America settled at $462/mt cfr Chattogram, up by $2/mt from Wednesday. Most Latin American yards preferred to sell in their domestic market while some raised HMS 1&2 (80:20) offers to $465-470/mt cfr Chattogram on higher freight charges.  


Lull in domestic scrap market 

Since the start of this week, offers for domestic ship scrap equivalent to P&S remained unchanged at BDT46,000-46,500/mt ex-yards. Offers for 16mm ship plates at BDT52,500-53,000/mt ex-yards, while import prices for scrapped vessels were at $500-510/ldt cfr Chattogram. Recyclers stayed away from those levels, which affected the generation of ship scrap.


Small and medium-scale steelmakers opted to sell rebars over billet due to better margins. Domestic billet offers at BDT60,000-60,500/mt ex-works Chattogram. Large steelmakers kept asking rates for rebar at BDT70,000-71,000/mt ex-works. Dhaka-based steel mills raised offers to BDT67,500-68,000/mt ex-works on Thursday to match large steelmaker’s rates.



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