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

Pakistani buyers stayed away from ferrous scrap imports as steel demand weakened amid Ramadan lull. Trading was tepid because of the Ridvan holiday, which marks the start of a twelve-day festival. 

  

Limited operating hours, lowered workforce availability, strict social distancing restrictions on rising COVID-19 cases also impacted bookings. 

 

Sellers were unwilling to lower offers citing increased container freight charges and tight availability of scrap for May-June shipments. Bearish sentiment in Bangladesh and India, where COVID-19 tallies are reaching new highs every day, has also made Pakistani buyers reduce bids.  

 

The Davis Index for containerized shredded, Monday, settled at $461.25/mt cfr Port Qasim, down $1.96/mt from Friday. The Davis Index for containerized shredded, Monday, settled at $461.25/mt cfr Port Qasim, down $1.96/mt from Friday. Two containerized scrap deals of 500mt shredded each were heard at $460/mt and $462/mt cfr port Qasim. In Turkey, mills lowered bids by $10/mt to $420-422/mt cfr Turkey for HMS 1&2 (80:20) as Ramadan has slowed economic activity. The depreciation of the lira against the US dollar also pressured prices. Mills in South Asia are thus expecting a decline in asking prices. 

 

The daily index for US-origin HMS 1&2 (80:20), Monday, dropped by $1.25/mt to $438.75/mt cfr Port Qasim from Friday. Offers were at $440-445/mt cfr Qasim, with most mills silent. 

 

UAE-based sellers have decided to stay away from offering material at present bid levels despite slow demand. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $446/mt cfr Port Qasim, down to $2/mt. Offers for mixed #1 HMS and P&S from UAE were unchanged at $460-465/mt cfr Port Qasim, depending on quality. 

High scrap price lift billet 

On Monday, Bala billet traded at PKR109,000-109,500/mt ex-works Lahore, up by PKR500/mt from Friday. Offers for G-60 billet were unchanged at PKR113,500-114,000/mt ex-works Punjab. 

Long steel producers in Punjab and Karachi kept offers firm, while many small-scale steelmakers have announced annual maintenance amid weak domestic demand. 

Local rebar offers remained rangebound at PKR120,000-121,000/mt ex-works Punjab while CC grade traded at PKR131,000/mt ex-works.

 

Domestic scrap firm amid short supply

Art Q toke scrap equivalent to a mix of HMS and P&S Monday was offered at PKR88,500-89,000/mt ex-yard Lahore, up PKR500/mt from Friday. Pure Q toke scrap equivalent to shredded traded at PKR90,300-90,500/mt ex-yard Lahore. In Gadani, demolition work slowed with the start of Ramadan as most workers have returned to their hometowns.

 

($1=PKR153.11)

 

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