Imported ferrous scrap bookings in Pakistan gained momentum mirroring a jump in the Turkish bulk prices and increased global trades. Despite the Eid holidays, a few deals heard at $10-15/mt higher than prior trades. Buyers are keen to book material before offers rise further. Ferrous scrap offers in containers have surged to near levels last seen in 2008, as per market participants.
Pakistan is observing national holidays till May 15 and the pace of trading would normalise only after May 17. Availability of material for containerized trades has dipped as most yards looked to cater to the bulk market.
Trades gained momentum with over 10,000mt shredded sold despite Eid holidays. Sellers continued to raise offers taking cues from global markets. The daily Davis Index for containerized shredded, Thursday, settled at $523.93/mt cfr Port Qasim, up by $12.50/mt from Wednesday. Deals were in the range of $510-520/mt cfr Qasim for material from the EU/UK. Expectations on Thursday rose in the range of $525-530/mt cfr Qasim driven by higher post-Eid demand.
In Turkey, bulk purchases for ferrous scrap gained momentum amid bullish steel prices. Mills bought June shipment cargoes from Russia, UK and Europe with steady rebar prices in Turkey.
Ferrous scrap prices are expected to stay as higher steel export prices offered from Asia-based exporters is creating opportunities for Turkish mills. This could boost demand for Turkish steel and boost scrap consumption. The daily index for bulk US-origin HMS 1&2 (80:20) settled at $502.93/mt cfr Turkey, up by $0.43/mt on Wednesday pushing offers to $510-515/mt cfr Turkey.
The daily index for US-origin HMS 1&2 (80:20), Thursday, spiked $17.5/mt to $505/mt cfr Port Qasim. US suppliers withdrew all low offers for ferrous scrap in containers. Suppliers raised offers by at least $20/mt mid-week as global steel prices rose by $30-50/mt.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, settled at $500/mt cfr Port Qasim, up $16/mt. On Thursday, offers for UAE-origin mixed #1 HMS and P&S surged to $505-510/mt cfr Qasim. UAE-based sellers were active despite holidays as prices continued to trend up. Indian mills have increased inquiries driven by bullish steel export prices.
More steelmakers could return to the market next week to refill inventories, while sales of steel products, billet and rebar remain halted amid Eid holidays.
($1=PKR152.5)