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

Rising HRC prices and a shortage of scrap pushed a few Pakistani mills to procure imported scrap at higher prices this week. Trades were slow as mills bought limited volumes to meet immediate requirements before prices rise further. Large mills with tonnages in hand and small-scale mills are resisting rising offers. 


The daily Davis Index for containerized shredded, Tuesday, rose by $1.39/mt from Monday to settle at $401.39/mt cfr Port Qasim. A couple of deals for the UK/EU origin 1,000mt shredded heard at $398-400/mt cfr Qasim on Monday, while offers rose to $405-408/mt cfr Qasim from traders, who were checking buying interests on Tuesday. Mills could slow down purchases as offers have turned less viable for them and may stay away till the prices cool-off in the future. 


Traders, who breached payment terms during the pandemic are facing rejections from shipping lines. Some traders have had to cancel their deals with buyers amid price increases. European suppliers plan to close yards, ahead of schedule, 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 $377/mt cfr Port Qasim, up $3/mt from prior Tuesday. Trades, albeit, limited reported at $375-380/mt cfr Port Qasim. Dubai-origin containerized mixed #1 HMS and P&S sarya scrap offered at $385-390/mt cfr Port Qasim, gaining another $10/mt in a couple of days. 


The index for US-origin HMS 1&2 (80:20), Tuesday, settled at $375.21/mt cfr Port Qasim up by $2.71/mt from Monday. Many US-based yards could have materials in hand, but they are not offering to take advantage of the ever-rising market. Finished steel prices are strong in Turkey, the US and the CIS region. Rising cases of COVID-19 in the US and concerns around logistics in winter added to yard owners’ worries. 


Domestic steel prices adjust, scrap bullish

In the domestic market, Bala billet prices fell slightly to trade at PKR93,500-93,500/mt ($590-595/mt) ex-works Punjab, down PKR1,000/mt from late last week. Rebar makers raised prices to pass on the increased input cost 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 stable at PKR113,500-114,000/mt ex-works. 


Domestic ferrous scrap prices in Pakistan rose on bullish global cues. Prices for Art Q toke scrap equivalent to a mix of HMS and P&S traded stable at PKR73,000/mt ex-works Lahore. Trades for the Pure Q Toke (shredded) heard at PKR74,000-74,500/mt ex-yards with offers rising to PKR75,000/mt ex-yards. Offers for scrapped tankers and containers heard at $410-430/ldt cfr Pakistan this week.




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