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

Pakistani ferrous scrap importers stayed away from purchases amid firm asking prices. Only a few buyers managed to book limited volumes at lower prices. Most suppliers were bullish on strong global cues. In the last couple of days, domestic billet and scrap prices have dropped over PKR2,000/mt, but rebar offers remain bullish. 


At present, there is a stay on changes in fixed import tariffs (ITP) for scrap. Re-rollers and shipbreakers at Gadani were upbeat as they were able to sell commercial rebar at competitive prices, while large makers have failed to attract buyers after raising offers. 

Amid limited demand, the Davis Index for containerized shredded, Friday, settled at $463.63/mt cfr Port Qasim, down by $3.43/mt from Thursday. Offers from the UK and European suppliers were at $465-470/mt cfr Port Qasim. Limited volumes of shredded traded at $460-465/mt cfr Port Qasim. 


The index for US-origin HMS 1&2 (80:20) settled at $435/mt cfr Port Qasim, up by $1.25/mt from a day ago. Domestic scrap settlements for March in the US moved up by $50-70/gt from the last month. Most yards kept offers firm and focused on domestic sales. Only some buyers in the US were willing to negotiate for premium grades amid a widening gap between premium and obsolete scrap in March domestic settlements. 


Trades for #1 HMS and P&S from UAE were reported at $440-450/mt cfr Port Qasim, depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $435/mt cfr Port Qasim, up by $2/mt. Furnaces and rollers opted for Dubai-origin HMS 1&2 (80:20) as they found shredded offers unviable to maintain profits. 


The weekly Davis Indexes for P&S 5ft and #1 busheling settled at $475/mt and $490/mt cfr Port Qasim, respectively, both down by $7/mt. 

Domestic billet down, rebar up

Bala billet prices in the domestic market dropped after rising to PKR108,000/mt ex-works as optimism on price hike waned in the second half of the week. On Friday, Bala traded at PKR105,500-106,000/mt ex-works. But from last week, the index for domestic Bala billet rose by PKR2,000/mt to PKR105,500/mt ($672/mt) ex-works.


The Davis Index for G-60 billet settled at PKR112,750/mt, up PKR1,500/mt ex-works Punjab. Demand is expected to pick up gradually as positive sentiment spreads across markets. The weekly Davis Index for rebar rose by PKR2,250/mt to PKR135,000/mt ex-works Karachi, while in Punjab, the index increased by PKR2,750/mt to PKR131,250/mt ex-works. 


Domestic scrap up on shortage 

The weekly index for Art Pure Q toke scrap equivalent to a mix of HMS and P&S, Friday, settled higher by PKR2,750/mt ($18/mt) to PKR84,750/mt ex-yard Lahore. After surging early week by PKR4,000-5,000/mt, prices fell in the second half on slow demand. Offers for Pure Q toke scrap equivalent to shredded were at PKR86,000-86,500/mt ex-yard Lahore. The weekly index for the grade settled at PKR86,250/mt ex-yards, up by PKR3,000/mt.


Shipbreaking scrap equivalent P&S traded above PKR90,000-92,000/mt ex-yards. For shipbreakers, yards were busy with cutting activities. Offers for vessels were in the range of $440-450/ldt cnf amid improved sentiment. Rebar made from re-rolling scrap was offered at lower prices compared to large steelmakers asking rates.



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