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

A sharp rise in the bulk ferrous scrap market in Turkey, high international HRC prices and a shortage of materials pushed Pakistan imported scrap offers up $10-15/mt over the weekend. On Monday, though most buyers turned cautious and tried to materialise deals actively at fresh offers. Suppliers, on the other hand, held offers to make the most of the ‘bull’ market. 


The daily Davis Index for containerized shredded, Monday, rose by $13.93/mt from Friday to settle at $400/mt cfr Port Qasim. Though there were hardly any confirmed deals, most of the indications for the grade were only above $400-405/mt cfr Qasim for January shipments. Mills could slow down their purchases as offers have turned non-viable for them and may stay away till the prices cool-off in the next month. 


Many traders have cancelled their deals with buyers amid price increases. Few European suppliers plan to close yards from mid-December till the first week of January on account of the Christmas and New Year holidays. 


The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $374/mt cfr Port Qasim, up $6/mt from prior Monday. Trades, albeit, limited reported at $375-380/mt cfr Port Qasim. Dubai-origin containerized mixed #1 HMS and P&S sarya scrap offered at $380/mt cfr Port Qasim, gaining $10/mt from Friday. There were no offers for containerized scrap from South Africa as their International Trade Administration Commission has decided to ban exports of ferrous scrap to support the domestic industry. 


The index for US-origin HMS 1&2 (80:20), Friday, settled at $372.5/mt cfr Port Qasim up by $3.75/mt from Friday. Many US-based yards could have materials in hand, but they are not offering to take advantage of ever-rising market. Finished steel prices are strong in Turkey, US and CIS region. 


Domestic steel prices up; demand slow 

In the domestic market, Bala billet prices heard at PKR94,500-95,000/mt ($590-595/mt) ex-works Punjab. Rebar makers decided to pass on the increase in input costs to end-users. Trades for rebar started recovering in the Southern region and were at PKR114,500-115,000/mt ex-works Karachi. 


In Punjab, G-60 rebar prices were at PKR113,500-114,000/mt ex-works. Most mills cancelled discounts on finished steel and are eyeing to increase prices by another PKR1,000-1,500/mt this week. 


Domestic scrap

Sharp rise in prices and demand remain unsupportive of 100pc capacity utilization and continuous production by mills. During winters, many mills could cut production. Domestic ferrous scrap prices in Pakistan rose on bullish global cues. On Monday, prices increased by PKR500-1,000/mt from Friday. 


Prices for Art Q toke scrap equivalent to a mix of HMS and P&S heard at PKR73,000/mt ex-works Lahore, up PKR500/mt from Friday. Trades for the Pure Q Toke (shredded) heard at PKR74,000-74,500/mt ex-yards with offers moving up to PKR75,000/mt ex-yards.


Pakistan ship recyclers remained active. Recyclers bought scrapped tankers at $410-415/ldt cfr Pakistan late last week. 



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