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

Containerized imported ferrous scrap trades in Bangladesh slowed as only a few sellers were willing to match offer prices. Demand could pick up aided by positive sentiment in the global bulk market and expectations of an uptick in prices post-Chinese New Year.


Trading slowed as mills were unsure of firm finished steel prices through Q1 2021. Inquiries remained high indicating buyers would be back next week, if not immediately. 


The daily Davis Index for containerized shredded, Friday, settled at $423.75/mt cfr Chattogram, up by $3.75/mt from Thursday, but down by $9.46/mt from Feb 5. Bids for shredded were at $415-420/mt cfr Chattogram against offers of $425-435/mt cfr Chattogram on Friday. 


Mills preferred HMS and P&S over high-priced busheling and shredded scrap. The daily Davis Index for containerized HMS 1&2 (80:20) from the US settled at $402.5/mt cfr Chattogram, up by $5/mt; while the index for the grade from Latin America at $403/mt cfr Chattogram. 


Only a few offers for HMS #1 from Chile were active on Friday at $405-410/mt cfr Chattogram as suppliers stayed away from seaborne trade amid strong domestic demand and prices. 


UK yards were away from negotiations with the country under lockdown due to rising COVID-19 infections while freight charges have touched $88-90/mt on the UK to Bangladesh route, compared to the UK to Turkey bulk route which is just around $20/mt, said traders.


Increased demand for Indian pellets in the export market pushed offers for Sponge iron to $360-365/mt cpt Benapole or $375-380/mt cfr Chattogram. The rise could turn mills towards HMS scrap offered at $400/mt cfr Chattogram.


Trades for containerized P&S and #1 busheling were sporadic. The index for P&S settled at $428/mt, up by $4/mt; while that for #1 busheling was at $450/mt cfr Chattogram, up by $5/mt.


In the bulk market, inquiries and negotiations increased with trades expected to materialise next week. Offers from Australian yards for bulk shredded heard above $440-445/mt cfr Chattogram while European yards targetted $450-460/mt cfr, said importers. Offers for Japanese #2 HMS in small bulk cargoes heard at $425-430/mt cfr Chattogram.


Domestic scrap up

The weekly index for ship scrap equivalent to P&S rose by BDT500/mt ($7/mt) to BDT40,250/mt ($475/mt) ex-works. The index for domestic HMS 1&2 (80:20) rose BDT625/mt to BDT38,750/mt ex-yard Chattogram. Some yards offered domestic ship scrap at BDT3000-37,500/mt ($437-442/mt) ex-works. Prices of ship plates also rebounded to BDT44,500-45,000/mt ex-yard while 16mm plates traded at BDT46,000-46,500/mt ex-yard. 


Domestic billet traded at BDT50,000/mt ex-works Chattogram, with its index up by BDT1,000/mt. The index for large steelmakers’ rebar, Friday, rose BDT250/mt to BDT65,000/mt ex-works. Mills cancelled discounts amid rising imported scrap prices and intend to hike steel prices in the coming days. 


The index for rebar from medium-scale mills in Dhaka rose BDT875/mt to BDT59,000/mt ex-works. Small-scale mills offered rebar above BDT54,500-55,000/mt ex-works. Prices of domestic scrap and billet have gone up but rebar prices have remained flat discouraging buyers from scrap purchases.



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