Pakistan remained the most preferred destination for shredded scrap suppliers as mills continued to pay the most competitive prices among subcontinental buyers. Traders anticipate that ahead of Ramadan in April end, most mills could actively restock materials supporting higher prices. Also, steel demand in the country could stay strong until the monsoon arrives in June.
The daily Davis Index for containerized shredded, Monday, rose by $4.82/mt to $458.75/mt cfr Port Qasim. Pakistani buyers were willing to pay higher than their Indian and Bangladeshi counterparts. A few trades for shredded concluded at $453-455/mt cfr Port Qasim pushing offers upto $460-465/mt cfr Qasim on Monday.
In Turkey, mills like ICDAS and Koc Metallurgy have hiked rebar prices by TRY50-70/mt in the domestic market. Turkish currency lira continued to strengthen against the US dollar to 7.01 on Monday. With a new shredded deal from the US at $440/mt cfr Turkey, most market participants believe HMS 1&2 (80:20) prices should be above $430-435/mt cfr Turkey for remaining bulk shipments.
The index for US-origin HMS 1&2 (80:20) settled at $421.25/mt cfr Port Qasim, up by $3.96/mt from Friday. Amid bullish domestic outlook for March, only a few export offers of containerized HMS 1&2 (80:20) heard at $420-425/mt cfr Port Qasim.
Offers for #1 HMS and P&S from UAE at $425-430/mt cfr Port Qasim depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20) was up by $2/mt at $420/mt cfr Port Qasim. Trades for containerized UAE-origin HMS 1&2 (80:20) at $420/mt cfr Port Qasim. Mills opted for Dubai-origin HMS 1&2 (80:20) as mills found shredded offers very high.
In March, the domestic scrap market in the US is expected to rise compared to February settlements amid low collection rates and resulting shortages at yards. This could have a bearing on offers to South Asian markets.
Domestic billet stable, but buying slows
On Monday, billet prices remained stable at PKR102,000-102,500/mt ($640-646/mt) ex-works. G-60 billet traded at PKR111,500-112,000/mt ex-works Punjab. Demand is expected to pick up gradually as positive sentiment spreads across markets.
Rebar offers remained in the range PKR127,500-128,000/0mt ex-works Karachi, while in Punjab, around PKR125,500-126,000/mt ex-works.
Domestic scrap maintains uptrend
Offers for Art Pure Q toke scrap equivalent to a mix of HMS and P&S Monday inched up by PKR300-500/mt to PKR82,000/mt ex-yard Lahore. Trades for the Pure Q Toke equivalent to shredded reported in the range of PKR83,500-83,700/mt ex-yards.
($1=PKR158.9)