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

Buying activity for imported ferrous scrap gained momentum in Pakistan as prices dropped. Trades for HMS from the UAE were reported at lowered rates, while offers for shredded recovered after a few sales concluded at reduced prices, earlier this week. A majority of market participants waited as domestic steel sales were yet to resume as estimated. 


The daily Davis Index for containerized shredded, Thursday, was at $527/mt cfr Port Qasim, down $0.5/mt. Trades for containerized shredded were reported at $523-525/mt cfr Qasim while for a prompt delivery, mills were heard paying $528-530/mt cfr Qasim. On Thursday, offers were in the range $528-532/mt cfr Qasim depending on the terms of delivery. 


Chinese prices declined further amid stricter production cuts and rising COVID-19 cases. The daily index for US origin HMS 1&2 (80:20) dropped to $455.71/mt cfr in Turkey amid lowered bids. A decline in global cues, discouraged buyers from active bookings in South Asia.  


The Pakistani currency remained volatile against USD and depreciated to PKR164.4 against $1 on Thursday from PKR163.5 a day prior.


Offers for imported HMS from the UAE dropped following an ease in the supply of HMS and lowered bids. The daily Davis Index for UAE-origin HMS 1&2 (80:20) dropped by $6/mt to $490/mt cfr port Qasim. Trades for UAE-origin mixed (#1 HMS and P&S) concluded at $505-508/mt cfr Port Qasim, down $5-7/mt from yesterday.


Amid suspended buying inquiries on high freight component, the daily index for US-origin HMS 1&2 (80:20), Thursday, settled at $487.5/mt cfr Port Qasim, down $1/mt.


Rebar trades slowed on Thursday, leading to a PKR500-1000/mt decline in prices. 


Offers for rebar G-60 jumped to PKR167,000-168,000/mt ex-works Karachi and PKR165,000-166,000/mt ex Punjab, down PKR500-1000/mt. Local rebar offers too were on downtrend to PKR154,500-155,000/mt ex-works Lahore on Thursday. 


Extending the downward movement, domestic Bala billet prices on Thursday dropped further by PKR1,500-2,000/mt to PKR136,000-136,500/mt ($827-830/mt) ex-works. A few construction projects could slow down as Muharram starts. Following a surplus in supply, prices lost steam.


In the domestic scrap market, Art Q toke scrap (equivalent to a mix of HMS and P&S) traded flat at PKR106,000-106,500/mt ex-yard Lahore and Pure Q toke scrap (equivalent to shredded) remained unchanged at PKR108,000-108,500/mt ex-yard Lahore. 




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