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

Pakistani mills were less confident of their restocking plans as the domestic steel prices, especially commercial billet, have failed to rise. Ongoing trades for billet at lower prices and a flat market for rebar resulted in very limited trades for imported ferrous scrap. Still, following global cues expectations of trades to pick up emerged from some optimistic traders. 


The daily Davis Index for containerized shredded, Friday, rose by $1.49/mt to settle at $437.92/mt cfr Port Qasim. Prices rose $24.42/mt from a week earlier. Offers on Friday jumped to $435-445/mt cfr Port Qasim for UK/EU-origin shredded. Most suppliers are either holding offers or asking high ahead of holidays from Dec 21.  


The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $416/mt cfr Port Qasim, up by $1/mt from Thursday. Dubai suppliers anticipate that there will be a further rise in inquiries for HMS scrap when the suppliers from the US and Europe will be off for their winter break. UAE-based suppliers are holding on to their material amid expectations of higher prices. Rebar prices in the UAE firmed up prompting higher domestic scrap demand.  


Offers for Dubai-origin containerized mixed #1 HMS and P&S sarya rose above $420-425/mt cfr Port Qasim due to which mills dropped restocking plans. Harsh winter in many rural regions of the country has halted construction, while large infra projects catered by leading steelmakers are witnessing cash flow issues.  


The index for US-origin HMS 1&2 (80:20), Friday, settled at $415.5/mt cfr Port Qasim, up $0.29/mt from a day prior and gaining $23.36/mt from a week earlier following high offers from supplier yards. The weekly Davis Indexes for P&S 5ft and #1 busheling settled at $443/mt and $458/mt cfr Port Qasim, up by $35/mt and $38/mt, respectively. Cast iron, rotor, and drums from the US were offered at $440-460/mt cfr Pakistan, higher by $20/mt from the prior week.  


Billet prices soften

In the domestic market, limited trades pulled bala billet prices down to PKR93,000-94,000/mt ($581-587/mt) ex-works Punjab, with index down by PKR1,893/mt from Dec 11. The Davis Index for G-60 billet settled at PKR99,250/mt ex-works Punjab, down PKR500/mt from Dec 11.


The weekly Davis Index for G-60 rebar settled flat at PKR117,750/mt ex-works Karachi. While the same rose by PKR107/mt to PKR116,250/mt ex-works Punjab from the prior week. A major mill in the South had hiked rebar prices by PKR3,000/mt ($19/mt) effective Dec 10 but failed to encourage buying and is offering discounts this week. Prices revised to PKR122,000-123,000/mt ($762-768/mt) ex-works. 


Domestic scrap

The index for Art Q toke scrap equivalent to a mix of HMS and P&S jumped PKR1,036/mt to PKR74,250/mt ex-yard Lahore, Friday, from late last week. The weekly index for Pure Q Toke (shredded) rose PKR229/mt to PKR75,250/mt ex-yards in line with rising imported scrap prices. Domestic ferrous scrap prices in Pakistan rose slowly but gradually over this week. For shipbreakers, offers for scrapped tankers heard flat at $420-440/ldt cfr Pakistan from the prior week.



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