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

Ferrous scrap prices rose in Pakistan despite slow demand ahead of the Eid holidays. Some mills decided to restock materials ahead of Eid closure pushing prices up $5-10/mt on Wednesday. The government has announced national holidays from May 10-15 while market participants expect trading to remain suspended from Sunday, May 9 to Monday, May 17. The country is also observing stringent restrictions on the movement of people and goods due to the resurgence of COVID-19, but steel production remains unimpacted.


The daily Davis Index for containerized shredded, Wednesday, settled at $481.25/mt cfr Port Qasim, up by $6.02/mt from Tuesday. On Wednesday, offers from the UK/EU origin rose by $5-10/mt reaching $485-490/mt cfr Qasim. As demand outpaces the supply of ferrous scrap, globally, prices jumped both in the containers and bulk markets.


In Turkey, demand for ferrous scrap turned active in the bulk market encouraged by bullish steel prices. Market participants expect prices to rise in the coming days in line with an increase in domestic rebar prices. The daily index for bulk US-origin HMS 1&2 (80:20) rose to $458.6/mt cfr Turkey, up over $6/mt on Wednesday. Negotiations heard at around $462-463/mt cfr Turkey with no confirmation till publication.


The daily index for US-origin HMS 1&2 (80:20), Wednesday, gained $3/mt to $455/mt cfr Port Qasim. Trades reported at index price while offers continued to move upwards further. Most US suppliers are preparing for bullish domestic demand in May and are likely to prefer domestic trades over seaborne trades amid logistics challenges.


The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $456/mt cfr Port Qasim, up by $3/mt. Trades reported at $465-470/mt cfr Qasim for UAE-origin mixed #1 HMS and P&S amid limited inventories at mills. UAE-based traders are hopeful of more deals in the coming days supported by a pick-up in steel demand post-Eid.


In the domestic market, Bala billet offered at PKR111,500-111,800/mt ex-works Lahore on Wednesday, maintaining the uptrend. Offers for G-60 billet at PKR115,500-116,000/mt ex-works Punjab against buying interest at PKR114,500-115,000/mt ex-works Punjab stable from a day prior.


Leading rebar makers Amreli steel has expanded its annual rebar capacity by 400,000mt to 600,000mt with the installation of a new bar mill in Karachi. Most large steelmakers in Punjab and Karachi are optimistic about steel demand post-Eid. For rebar, offers rose to PKR135,500-136,000/mt ex-works Karachi and PKR132,000/mt ex-works Punjab. Local rebar sold at PKR121,000/mt ex-works Punjab. With improvement in demand, most steelmakers are likely to attempt another round of price hike in the coming days.


Higher imported ferrous scrap prices are expected to lift the price and demand for domestic scrap. Art Q toke scrap equivalent to a mix of HMS and P&S traded at PKR90,000-90,200/mt ex-yard Lahore. Pure Q toke scrap (equivalent to shredded) rose to PKR91,200-91,500/mt ex-yard Lahore. Domestic scrap supply remains tight amid slow activities in the demolition market.



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