Domestic steel demand in Pakistan remained flat as trading was largely halted due to Muharram holidays. Trades are expected to resume next week.
Major steel mills have announced a price hike for rebar and were unwilling to accept new orders at prior prices. Karachi based mills announced a price hike of PKR6,000/mt ($36/mt) for rebar on Aug 17.
The weekly Davis Index for rebar rose to PKR173,000/mt ex-works Karachi, up PKR5,500/mt on Friday. The weekly index for rebar was at PKR171,000/mt ex-works Punjab, up PKR5,000/mt from Aug 13. Local rebar traded at PKR160,000/mt following limited construction projects.
Domestic steel prices surged as the Pakistani currency depreciated to PKR164.34 against the US dollar.
Several construction projects could resume as monsoon recedes. The market is likely to near a peak in steel demand during September and October.
The daily Davis Index for containerized shredded remained unchanged on Friday at $539/mt cfr Qasim. Trades slowed as market participants awaited more clarity on global prices. The index rose by $6/mt from last Friday. A few offers were heard in the range of $540-545/mt cfr Qasim following the strengthening of rebar prices in the country.
Turkish ferrous scrap buying prices declined as rebar prices fell below $690/mt fob. In the bulk market, trades were reported at $450/mt cfr Turkey for HMS 1&2 (80:20).Turkish mills operated with a wider spread of bulk scrap import vs rebar prices against the usual level of $170/mt, which could support scrap prices.
Demand for the UAE origin HMS was flat in India and Pakistan this week. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled flat at $495/mt cfr port Qasim. The index rose by $3/mt from Aug 13. Trades for UAE-origin mixed #1 HMS and P&S were limited but flat at $510/mt cfr Port Qasim.
The daily index for US-origin HMS 1&2 (80:20) settled at $493.75/mt cfr Port Qasim on Friday, up $1.25/mt from Thursday and the same was higher by $6.25/mt from Aug 13. Containerized freights rates increased while demand for long transit material remained low in South Asia. Domestic demand for ferrous scrap in the US was strong following high steel prices.
The Davis Index for P&S 5ft recovered by $2/mt from previous Friday to settle at $540/mt cfr while the index for #1 busheling remained unchanged at $555/mt cfr Port Qasim. Trades for high grades remained scare as few buyers expressed buying interest at high offers.
The weekly index for domestic Bala billet rose by PKR4,000/mt ($24.3/mt) to PKR140,250/mt ($853/mt) ex-works. The weekly Davis Index for G-60 billet was at PKR148,500/mt ex-works Punjab, on Friday, up by PKR3,750/mt.
The weekly index for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded) increased by PKR1,500/mt to PKR108,000/mt and PKR110,500/mt ex-yard Lahore, respectively, amid tight supply and a surge in steel prices.