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

South Asian imported ferrous scrap prices continued to rise as suppliers raised offer prices further. Yards in the US and UK cited a supply crunch. Pakistani buyers booked more containerized scrap on Wednesday. After resisting for a week, mills in Mundra and Goa accepted offers for HMS scrap at prices which were $5-10/mt higher than their bids.  

The daily Davis Index for containerized shredded, Wednesday, settled at $289.17/mt cfr India subcontinent, up by $0.57/mt from $288.60/mt cfr.  

The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $270.45/mt cfr India subcontinent, up by $2.5/mt from $267.95/mt cfr. 

In Turkey, another 4-5 bulk deals for August shipments were reported, supported by healthy finished steel demand. The Davis Index for US-origin HMS 1&2 (80:20) on Tuesday settled at $266.25/mt cfr Turkey, up by $1.33/mt from a day ago and $8/mt from the prior week. 

Pakistan

Finished steel demand in Pakistan has improved considerably from the last month when the country remained under a stringent lockdown. 

The Davis Index for US-origin containerized shredded settled at $292.86/mt cfr Port Qasim Wednesday, up by $0.86/mt from Tuesday. Trades for US-origin shredded were at $290/mt cfr Qasim and UK-origin shredded was sold at $293-295/mt cfr Qasim. Offers for shredded on Wednesday were at $295-298/mt cfr Qasim with mills unwilling to accept prices over $290/mt cfr Qasim. 

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $286.5/mt cfr Qasim, up by $1.5/mt from Tuesday. Trades for UAE-origin HMS 1&2 (80:20) were at $285-287/mt cfr Qasim. 

Offers for P&S were in the range of $292-295/mt cfr Qasim. Busheling trades were reported at $305-307/mt cfr Qasim from Brazilian suppliers.  

The daily index for US-origin HMS 1&2 (80:20) was at $272.5/mt cfr Qasim, up by $2.5/mt. Trades for US-origin HMS 1&2 (80:20) were reported at $270-275/mt cfr Qasim. 

Prices for commercial Bala billet prices remained unchanged from Tuesday at PKR93,00/mt ex-works Lahore, inclusive of local taxes. Trades for domestic mixed HMS and P&S scrap were reported at PKR72,500/mt delivered Lahore mill, unchanged from the prior day.

 

India 

The daily Davis Index for containerized shredded, Wednesday, settled at $286.13/mt cfr Nhava Sheva, up by $0.13/mt. Offers for US-origin containerized shredded were at $288-293/mt cfr Nhava Sheva though a few mills continued to bid at $275-280/mt cfr Nhava Sheva. Sellers were unwilling to sell at these levels. 

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $267.5/mt cfr Nhava Sheva, up by $1.5/mt from Tuesday. Most UAE suppliers, however, preferred to sell material in Pakistan for higher prices. 

A few trades for Brazilian HMS 1&2 (80:20) were at $260-265/mt cfr Mundra and Nhava Sheva on Monday. 

The index for US-origin HMS 1&2 (80:20) settled at $267.5/mt cfr Nhava Sheva, up by $1.5/mt from Tuesday. Suppliers are offering the grade at $270-275/mt cfr Nhava Sheva. 

 

Bangladesh 

Davis Index sources state Bangladesh steel mills have booked around two mixed ferrous scrap bulk cargoes from US West Coast suppliers at $270-275/mt cfr Chattogram. 

Several small bulk cargoes were booked from Japan. Japanese #2 HMS and busheling was offered at $275-280/mt and $295-300/mt cfr Chattogram, respectively.  

The Davis Index for US-origin containerized shredded settled at $297.5/mt cfr Chattogram, up by $0.5/mt from Tuesday. Offers from European and UK yards were at $300-305/mt cfr Chattogram. But Dhaka-based mills booked Australia and New Zealand-origin shredded, priced lower at $290/mt cfr Chattogram. 

The index for Latin America-origin HMS 1&2 (80:20) settled at $282.5/mt cfr Chattogram, up from $279.58/mt on Tuesday. Offers for #1 HMS from Brazil, Chile, and Europe were at $285-290/mt cfr Chattogram. 

The index for US-origin HMS 1&2 (80:20) settled at $287.5/mt cfr Chattogram, up from $285/mt cfr Chattogram on Tuesday, with trades reported in the range of $285-290/mt cfr Chattogram. 

EAF capacity expansion project by one of the major ship recyclers in the country remains delayed due to COVID-19 restrictions in the country. Thus, the recycler offered more ferrous scrap in the market at lowered prices to liquidate inventories. 

Domestic ship breaking scrap was offered at BDT24,500-25,000/mt ex-yard. 

($1=Rs74.59;PKR168.23;BDT84.78)

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