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

Amid limited scrap inventories, Pakistani mills actively booked imported ferrous scrap in containers placing the most attractive bids in the Indian subcontinent.


Fears of worsening supply, elevated freights and non-availability of offers, encouraged trades. Mills also resumed trades for HMS paying $5-10/mt higher than late last week. On Monday, heavy rains in Karachi impacted transportation, production and domestic sales.


The daily Davis Index for containerized shredded, Monday, was at $546.25/mt cfr Port Qasim, up by $1.25/mt. Deals from the UK/EU origin yards heard at $545-548/mt cfr Qasim. Most offers, Monday, were at $550/mt cfr Qasim despite a few mills expecting prices to show a marginal drop following softening in Turkish bulk scrap purchases.


Trades for UAE-origin picked up in Pakistan and Bangladesh as Indian buyers stepped out of the competition. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $500/mt cfr Port Qasim, up by $4/mt from a day ago. UAE-origin mixed #1 HMS and P&S heard at $510/mt cfr Port Qasim, with a few sellers targeting as high as $515/mt cfr Qasim.


Pakistani mills paid at least $30-40/mt higher than the equivalent Indian prices amid a supply crunch in the domestic market. The index for US-origin HMS 1&2 (80:20), Monday, settled at $507.5/mt cfr Port Qasim, up by $3.25/mt from Friday.


Most large producers in Karachi and Punjab could hike rebar prices by PKR5,000-5,500/mt ($31-33/mt) to pass on the recent increase in raw material prices. Prices have jumped up despite slow sales.


Rebar traded at PKR155,750/mt ex-works Karachi and PKR154,750/mt ex-works Punjab, on improving demand ahead of Eid holidays. As the monsoon season has started, construction activities could slow in the coming days.


Domestic Bala billet prices fell by PKR1,500-2,000/mt after reaching PKR130,000/mt ($815/mt) ex-works on Friday. On Monday, Bala billet was at PKR128,000/mt ex-works.


Following firm imported scrap offers and tight domestic supply, trades for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded), Monday, reported at around PKR102,000-102,300/mt and PKR103,700-104,000/mt ex-yard Lahore, respectively, up by PKR300-500/mt from Friday.



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