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

Pakistani mills stayed away from ferrous scrap trades for the most part of the week, but are expected to turn active for restocking at lower prices given some indications of strengthening global prices.


The daily Davis Index for containerized shredded, Friday, turned up by $3.75/mt to $423.75/mt cfr Port Qasim. Prices fell $6.25/mt from the prior week. Offers on Friday turn up marginally mirroring the bulk price trend, however, mills have exercised caution ahead of Chinese New Year holidays and short-term volatility. Most mills decided not to place counter bids against offers of $425-430/mt cfr Qasim on Friday.


The daily index for US-origin HMS 1&2 (80:20) settled at $387.5/mt cfr Port Qasim, up $1.07/mt, while down $18.75/mt from a week ago. There is a possibility of a drop in the US ferrous scrap prices in February amid easing supply on improved collection rates.  


Dubai-based suppliers turned down low bids from Indian and Pakistani buyers and raised offers by $15-20/mt on Friday. Traders from UAE offered #1 HMS and P&S at $390-400/mt cfr Port Qasim depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $385/mt cfr Port Qasim down $10/mt from the prior week.  


The weekly Davis Indexes for P&S 5ft and #1 busheling settled at $441/mt and $468/mt cfr Port Qasim, respectively, down $7/mt. Trades for high-grade scrap remained limited amid short supply due to strong demand in suppliers’ domestic markets.  


Domestic billet prices reverse  

The Davis Index for G-60 billet settled at PKR106,000/mt ex-works Punjab, up PKR3,500/mt from Jan 22. In Lahore, G-60 billet traded at PKR106,000-107,000/mt ex-works. The weekly index for domestic Bala billet rose by PKR4,000/mt to PKR98,000/mt ($611/mt) ex-works.  


Many cash-strapped mills canceled discounts to increase cash flow and clear utility bills by month-end. Limited supply and rising demand pushed domestic scrap up in Pakistan amid overall positive sentiment. With the global ferrous scrap market showing signs of strengthening, large mills might hold their rebar and billet prices high in the coming weeks ahead of peak construction season in the housing sector.


Following prolonged resistance by end-users, rebar prices registered a drop this week. The weekly Davis Index for rebar dropped by PKR2,500/mt to PKR132,500/mt ex-works Karachi, while in Punjab, the index decreased PKR3,000/mt to PKR126,500/mt ex-works. Some small rebar makers offered at PKR112,000-114,000/mt ex-works.  


Domestic scrap rises  

The weekly index for Art Pure Q toke scrap equivalent to a mix of HMS and P&S Friday increased by PKR3,000/mt ($19/mt) to PKR80,000/mt ex-yard Lahore. The weekly index for Pure Q Toke (shredded) increased by PKR2,750/mt to PKR81,250/mt ex-yards amid tight supply despite slow sales.  





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