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

Pakistani large steel mills booked a limited quantity of containerized ferrous scrap in containers. Furnaces in Lahore are yet to resume purchases in the new financial year beginning. If steel demand in the domestic market recovers, trading could gain momentum. Some market participants, however, are wary of the delta variant starting a new wave of COVID-19. Heavy monsoon rainfall could also hurt logistics. 


Most sellers diverted their supplies to Pakistan and Turkey. The daily Davis Index for containerized shredded, Friday, was at $540/mt cfr Port Qasim, up by $0.29/mt. Meanwhile from last Friday, the index rose by $7.5/mt. Most offers on Friday were at $540-545/mt cfr, however, mills refused to accept prices above $540/mt cfr Qasim. Mills are waiting for the market to absorb the recent price hikes before showing a willingness to raise their bids. Sellers, however, kept offers firm amid tight supply and hopes of healthy demand in the Turkey bulk market. 


In Turkey, imported ferrous scrap prices showed signs of strength, and bids below $495/mt cfr Turkey found no selling interest. The daily Davis Index for imports of US-origin HMS 1&2 (80:20) was unchanged at $500.83/mt cfr Turkey on Thursday, but up by over $5/mt from a week ago. Mills resumed August shipment bookings on tight global availability. Rebar demand in Turkey and Asia remains slow. 

Trades for UAE-origin material slowed after a week of rapid activity. But sellers kept offers firm for Indian and Pakistani buyers despite weak domestic rebar demand. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $487/mt cfr Port Qasim unchanged from a day ago but up by $4/mt from last Friday. Deals for UAE-origin mixed #1 HMS and P&S up at $495-500/mt cfr Port Qasim, with offers higher by $5/mt than these levels. 


The index for US-origin HMS 1&2 (80:20), Friday, settled at $501.25/mt cfr Port Qasim, up by $1.46/mt from a day ago and up by $5/mt from the prior Friday. Container freight rates remained elevated resulting in increased landed costs. In the US domestic market, HRC prices were above $1,850/nt ex-works, keeping demand for ferrous scrap healthy. 


The daily Davis Indexes for P&S 5ft rose by $5/mt to $548/mt cfr and #1 busheling up by $4/mt to $570/mt cfr Port Qasim. Most buyers remained away from any purchases of high-grade scrap.


Rebar and billet prices stay firm 

Amid tight supply for ferrous scrap and the resulting rise in input costs, major rebar producers mill in both north and south regions kept asking rates elevated. Many are also eyeing a further rise in the coming days. The weekly Davis Index for rebar was at PKR150,500/mt ex-works Karachi and PKR149,500/mt ex-works Punjab, up by PKR250/mt on improving demand. Local rebar offers were above PKR132,000/mt ex-works Lahore.


A gap between steel prices in the global market and Pakistan could also support steelmakers to raise offers. 

The index for domestic Bala billet increased by PKR3,250/mt ($21/mt) to PKR120,000/mt ($762/mt) ex-works. The weekly Davis Index for G-60 billet was at PKR126,250/mt ex-works Punjab, up PKR2,250/mt from the prior Friday.


Following firm imported scrap offers and tight domestic supply, the weekly indexes for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded), Friday, settled at PKR96,000/mt and PKR97,500/mt ex-yard Lahore, up by PKR1,500/mt and PKR2,000/mt, respectively. 




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