Pakistan government tightened its restrictions as the number of new COVID-19 cases refused to subside. After the lockdown extending till April 30, steel industry associations have been urging the government to relax restrictions for the steel industry and exempt port charges to support the traders fraternity.
Ferrous scrap importers continued to restock as supply is expected to remain short globally. Post Ramadan, steel demand in Pakistan could pick up as builders are gearing to resume construction projects with PKR 1 trillion. The government has also announced tax relief for the construction sector, a major driver of the country’s economy.
The weekly Davis Index for containerised shredded increased by $5/mt to settle at $275/mt cfr Port Qasim on Friday. Trades for containerised shredded concluded at $270-278/mt cfr Qasim. In the latter part of the week, offers from suppliers moved up in the range $280-290/mt cfr Qasim. Demand for ferrous scrap in Pakistan could marginally rise next week, however, due to the Ramadan holiday there would be no aggressive bookings, believe traders.
The Davis Index for Dubai-origin #1 HMS settled at $273/mt cfr Port Qasim, up by $5/mt from the prior week. Offers for a mix of #1 HMS and P&S were at $270-275/mt cfr Qasim. Containerised HMS 1&2 (80:20) from UAE traded at $265/mt cfr Qasim.
The Davis Index for P&S settled at $281/mt cfr Port Qasim, up by $5/mt from the prior week. P&S scrap from Brazil and the United Kingdom was offered at $275-280/mt cfr Qasim.
The index for busheling settled at $285/mt cfr Port Qasim, up by $5/mt from the prior week. Offers from South Africa and Brazil were around $290-295/mt cfr Qasim in the late week. Containerised HMS 1&2 (80:20) from the UK and US was offered at $250-255/mt cfr Port Qasim, flat from the prior week. Latin American HMS 1&2 (80:20) traded at $250-255/mt cfr Qasim, up by $10/mt from the prior week.
The Pakistan currency appreciated to PKR160.21 against $1 on Friday from PKR166.21 a week ago.
Pakistan’s domestic steel market remains flat
The weekly Davis Index for commercial Bala billet settled flat at PKR87,500/mt ex-yards Punjab, inclusive of local taxes. The Davis Index for G-60 billet settled at PKR93,250/mt cfr Qasim, also unchanged from the prior week.
The Davis Index for G-60 rebar settled flat at PKR108,500/mt ex-plant Karachi and PKR107,500/mt ex-plant Punjab. Domestic scrap prices in Pakistan remained flat with medium grade scrap, equivalent to shredded, offered at PKR67,250/mt and mixed HMS and P&S at PKR66,500/mt ex-works.