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

Bangladeshi mills paid a tad higher to materialise trades and secure inventories on Monday. However, softening domestic steel prices pulled back some buyers. A few mills in Chattogram continued purchases to maintain inventories for the next two months, while most Dhaka-based mills have stepped away from the market to avoid losses. 


The daily Davis Index for containerized shredded, Monday, settled at $485.23/mt cfr Chattogram, up $2.73/mt. Containerized trades were limited amid high domestic supply and ample scrap inventories arriving from the bulks bought in early January. 


Offers for shredded remained at $490-495/mt cfr Chattogram on elevated freight rates with trades at $485/mt cfr Chattogram. 

In the bulk market, a flurry of booking by Vietnamese mills pressured Bangladeshi buyers to rush for the material. A major mill is heard to have booked a small Japanese bulk. Bulk offers of HMS 1&2 (80:20) heard above $490-500/mt cfr Chattogram on Friday. Japanese suppliers continued to offers at $500-510/mt cfr China. 


The index for HMS 1&2 (80:20) from Latin America on Monday settled at $458/mt cfr Chattogram, up $3/mt. Suppliers focused on domestic sales where demand is active. Trades for HMS 1&2 (90:10) from Trinidad and Tobago reported at $460-465/mt cfr Chattogram. 


The daily Davis Index for US-origin containerized HMS 1&2 (80:20) settled at $460/mt cfr Chattogram, up $3.75/mt. Offers above $460-470/mt cfr Chattogram with most suppliers focused on domestic sales. 


Domestic scrap drops 

Amid increasing availability at yards, prices for ship scrap equivalent to P&S dropped to BDT43,000/mt ex-works, down BDT2,000/mt from the prior week. Buyers are negotiating for domestic HMS 1&2 (80:20) in the range BDT40,000-40,500/mt ex-yard Chattogram which remained a highly preferred option for most furnaces in Dhaka, who are staying away from imported scrap. 


On Monday, ship plates of 16mm size traded at BDT46,000-46,500/mt ex-yards, down BDT3,500-4,000/mt from the prior week. Supply from shipbreaking activities is expected to increase with most yards ramping up demolition.


Domestic billet prices remained at BDT55,000-56,000/mt ex-works Chattogram, marginally down from a week prior. High resistance to buying at higher prices pressurized sellers. 


Asking rates by large steelmakers’ rebar Monday remained flat at BDT67,000-67,500/mt ex-works. Mills could offer discounts to encourage buyers though they intend to hike steel prices in the coming days. Availability of lower prices rebar made out of re-rollable scrap has created competition in the market and large mills are not able to sell at their targeted asking rates.  


Rebar from medium-scale mills in Dhaka traded at BDT63,500-64,000/mt ex-works. Small-scale mills offered rebar above BDT58,000-58,500/mt ex-works. 



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