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

Pakistani ferrous scrap importers were in the market to book material despite high offers. The recently announced federal budget for FY2021-22 spells a positive outlook for steel consumption and has increased the GDP target to 4.8pc. 


The daily Davis Index for containerized shredded, Monday, rose by $4.46/mt to $532.5/mt cfr Port Qasim from Friday. Containerized trades for the UK/EU shredded were reported in the range of $530-535/mt cfr Qasim. Driven by strengthening global cues, expectations from sellers on Monday were at $540/mt cfr Port Qasim. Prices are nearing the record high of $550/mt cfr Qasim in 2008. 


In Turkey, a deal was reported at a lower price and the Davis Index for imports of US-origin HMS 1&2 (80:20) slipped by $3.61/mt from the preceding day to $506.97/mt cfr Turkey on Friday.Domestic rebar prices, however, continued to rise to 730/mt ex-works on Monday. In the export market, rebar offers could cross $750/mt fob Turkey on bullish cues from Asian markets. Chinese steel prices have shown recovery on rising iron ore prices which $220/mt cfr north China for 62pc Fe content. 


Offers for UAE-origin HMS scrap continued to strengthen on the back of firm demand. The Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $502/mt cfr Port Qasim, up by $4/mt from Friday. Trades for UAE-origin mixed #1 HMS and P&S were reported at $510-515/mt cfr Port Qasim amid tight supply.


The daily index for US-origin HMS 1&2 (80:20), Monday, settled at $502.64/mt cfr Port Qasim, up by $1.14/mt. International container freights rates remained elevated while COVID-19-related restrictions at few Chinese ports resulted in an imbalance between supply-demand of containers. 


Finished steel prices were also firm as mills in the country eyed further hikes on a continuous rise in ferrous scrap prices. In the domestic market, domestic Bala billet traded at PKR117,200-117,500/mt ex-works. 


Offers for local rebar were at PKR131,000/mt ex-works. Medium-scale steelmakers sold rebar traded at PKR145,500-146,000/mt ex-works Karachi and PKR144,000-144,500/mt ex-works Punjab. 


Domestic ferrous scrap supply remained tight. Offers for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded) were at PKR95,000/mt and PKR96,500/mt ex-yard Lahore, respectively, both up by PKR500/mt from Friday. 



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