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

Pakistani mills continued to book imported HMS over shredded, albeit in limited quantities. Offers for shredded remained firm, while those for HMS declined to widen the gap between the two grades above $50/mt. Once the new financial year  begins on July 1, mills could actively book scrap. Domestic steel prices are also expected to rise following high raw material import costs.  


The Pakistan Association of Large Steel Producers (PALSP) believes rebar prices in Pakistan lagged behind global markets. Pakistani rebar is priced 17-25pc lower compared to the US domestic market, as well as Turkish and Chinese export prices. Amid elevated scrap prices, mills could increase rebar by another around PKR10,000/mt.


Amid stable demand and increased inquiries, UAE sellers kept their offers firm. The Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, settled unchanged at $485/mt cfr Port Qasim. Deals for UAE-origin mixed #1 HMS and P&S were mostly at $495/mt cfr Port Qasim, while offers were at $498-500/mt cfr Qasim on Tuesday.


The index for US-origin HMS 1&2 (80:20), Tuesday, settled at $497.5/mt cfr Port Qasim, up by $1.5/mt from Monday. Availability of scrap from the US and the UK remains tight on steady demand in their respective domestic markets. Container freight rates remained elevated resulting in increased landed costs.


The daily Davis Index for containerized shredded, Tuesday, was at $536.07/mt cfr Port Qasim, up by $1.07/mt. Most offers on Monday remained at $538-540/mt cfr with bids at $535/mt cfr Qasim. Sellers, however, were unwilling to negotiate below $540/mt cfr Qasim on improving steel prices.


In Turkey, imported ferrous scrap offers remained firm as buyers are expected to resume trades. An upward push in the global metal prices driven by Russian export taxes could keep sentiment lifted. The daily Davis Index for imports of US-origin HMS 1&2 (80:20) was at $499.5/mt cfr Turkey on Monday, up by $2.59/mt from June 25. Amid depreciation of Lira against US Dollar domestic, export prices for rebar showed a marginal downtrend of around $10/mt to $720-725/mt fob.


Ahead of the financial year-end, many mills were busy closing their account books. On tight supply for ferrous scrap and the resulting rise in input costs, major rebar producers mills raised asking rates to PKR150,500/mt ex-works Karachi and PKR149,000-149,500/mt ex-works Punjab. Trades for rebar could pick once construction activities improve post-monsoon.


Domestic Bala billet prices continued to rise amid improving demand. On Tuesday, deals were reported at PKR119,000-119,500/mt ex-works, up PKR1,000/mt a day prior. Offers for G-60 billet were at PKR125,000/mt ex-works Punjab.


Amid firm imported scrap offers and tight domestic supply, the prices for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded) rose PKR500-1,000/mt to PKR95,000-95,500/mt and PKR96,500-97,000/mt ex-yard Lahore, respectively on Tuesday.


Gadani shipbreakers placed the highest bids for scrapped vessels in the subcontinent. Offers were above $560-570/ldt cfr Qasim.



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