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

Active imported ferrous scrap bookings from Pakistan have resumed with trades of over 10,000-15,000mt heard. Prices rebound following improved demand for shredded scrap, while HMS showed ‘low to no’ recovery. Domestic steel prices marginally drop on slow demand which is expected to gain momentum in the coming weeks. 


The daily Davis Index for containerized shredded, Friday, rebounded to $533/mt cfr Qasim, up $6/mt from Thursday. Trades for over 10,000mt of shredded heard sold at $530-535/mt cfr Qasim as mills resumed refilling of scrap inventories. The index rose by $5.5/mt from last Friday. A few deals for the UK and EU-origin shredded reported at $525-530/mt cfr Qasim. On Friday, deal for loaded shredded arriving in September heard at $540/mt cfr Qasim. 


Shredded prices dropped to as low as $523-525/mt cfr Qasim early-week, but recovered by over $10/mt on elevated freights and as demand outpaced supply. 


In the bulk market, except in Turkey, offers remained high in most regions. Turkish mills are operating with a wider spread of bulk scrap vs rebar at around $235/mt against the usual level of $170/mt. As rebar export orders return, mills could actively resume restocking scrap, hope market participants. 


Demand for the UAE origin HMS was stable in India and Pakistan this week. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $492/mt cfr port Qasim, up $2/mt. From Aug 6, the index fell by $1/mt. Trades for UAE-origin mixed #1 HMS and P&S continued at $505-510/mt cfr Port Qasim amid supported spread between ferrous scrap and finished steel in Pakistan and increased consumption.


The daily index for US-origin HMS 1&2 (80:20), Friday, settled at $487.5/mt cfr Port Qasim unchanged from Thursday and from Aug 6 as well. Containerized freights rates continued to rise while demand for long transit materials stayed low.


From prior Friday, the Davis Index for P&S 5ft recovered by $3/mt to settle at $538/mt cfr while the index for #1 busheling was unchanged at $555/mt cfr Port Qasim. Supply for prime grades remains tight and trades are yet to resume as very few buyers expressed buying interest at high offers.



Easing supply pushed down finished steel prices in the domestic market. Rebar sales continued to be steady over this week. The weekly Davis Indexes for rebar G-60 was at PKR167,500/mt ex-works Karachi, down PKR250/mt and PKR166,000/mt ex-works Punjab, unchanged, respectively, from Aug 6. Local rebar offers slipped to PKR154,000-155,000/mt following slow demand for billet and limited construction projects operational. The Pakistani currency’s depreciation against the US dollar at PKR164.42 pushed domestic steel prices up.



The weekly index for domestic Bala billet dropped by PKR2,000/mt ($5/mt) to PKR136,250/mt ($829/mt) ex-works. The weekly Davis Index for G-60 billet at PKR144,750/mt ex-works Punjab Friday, down PKR1,500/mt.


Domestic scrap

The weekly index for Art Q toke scrap (equivalent to a mix of HMS and P&S) was unchanged at PKR106,500/mt ex-yard Lahore and Pure Q toke scrap (equivalent to shredded) rose by PKR500/mt to PKR109,000/mt ex-yard Lahore following tight supply.


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