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

Pakistani mills resumed inquiries for imported scrap amid a revival in steel demand. After a few deals, sellers raised prices as supply remains tight. Rebar makers have also increased asking prices by around PKR5,000/mt ($32/mt) to try and absorb the rise in imported scrap. Elevated container freight rates and low vessel availability also increased asking prices. 

The daily Davis Index for containerized shredded, Friday, was at $532.5/mt cfr Port Qasim, up by $3.5/mt. But from last Friday, the index declined by $1.79/mt. Most offers on Friday were at $535-540/mt cfr, however, mills refused to accept these levels and kept bids at $525-530/mt cfr Qasim. Trading has, therefore, slowed for the last couple of days. 


In Turkey, imported ferrous scrap prices showed signs of revival as a deal was reported for US-origin material at higher prices on Thursday. Interest remains low as many have already booked scrap for their July requirements. The daily Davis Index for imports of US-origin HMS 1&2 (80:20) was at $496.91/t cfr Turkey on Thursday, up by $1.91/mt. Offers were at prices above $500/mt cfr Turkey for bulk cargoes amid firm rebar offers by Turkish mills. Russia’s export tax could boost global steel prices, believe participants. 


With demand and steel prices picking up in Pakistan, UAE sellers kept their offers firm on Friday. The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $483/mt cfr Port Qasim, up by $2/mt from a day ago but down by $17/mt from last Friday. Deals for UAE-origin mixed #1 HMS and P&S were at $495/mt cfr Port Qasim, while offers reported higher by $5/mt than these levels on Friday.

The index for US-origin HMS 1&2 (80:20), Friday, settled at $496.25/mt cfr Port Qasim, down by $2.5/mt from a day ago and by $10/mt from the prior Friday. 


The daily Davis Indexes for P&S 5ft declined by $6/mt to $543/mt cfr and #1 busheling down by $3/mt to $566/mt cfr Port Qasim. Most buyers remained away from any purchases of high-grade scrap.


Rebar and billet prices up on high costs

Amid tight supply for ferrous scrap and resulting rise in input costs, major rebar producers mills including Amreli Steel, Agha, Faizan, Abbas, and Naveena Steel increased asking rates by PKR5,000-5,500/mt effective June 24. The weekly Davis Indexes for rebar rose by PKR5,000/mt to PKR150,500/mt ex-works Karachi and by PKR5,250/mt to PKR149,250/mt ex-works Punjab. Local rebar offers were above PKR132,000/mt ex-works Lahore.


The index for domestic Bala billet increased by PKR500/mt to PKR116,750/mt ($742/mt) ex-works. The weekly Davis Index for G-60 billet was at PKR124,000/mt ex-works Punjab, up PKR750/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 PKR94,500/mt and PKR95,500/mt ex-yard Lahore, up by PKR500/mt and PKR350/mt, respectively. 


The Pakistan Association of Large Steel Producers urged the government to reconsider its decision to remove the steel industry from the Federal Excise Duty regime, which could be counterproductive for the sector and result in heavy losses. 



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