Few buyers are active in the Pakistani ferrous scrap market as most businesses are closed on account of the Eid holidays. The country is observing national holidays till May 15, however, active trades are unlikely to resume until May 17. Some steelmakers raised their bids to secure ferrous scrap before prices rise further.
Bullish bulk market and logistic challenges for containerized trades, spiked offers on Tuesday. The daily Davis Index for containerized shredded, Tuesday, settled at $498.57/mt cfr Port Qasim, up $2.5/mt from Monday. Most suppliers withdrew containerized offers to focus on fulfilling bulk demand.
In Turkey, demand for ferrous scrap bulk picked up on bullish global steel prices. Steel mills have raised domestic rebar offers to $745-750/mt ex-works, up by $15-25/mt from the late prior week. Most anticipate there is room for bulk offers to rise another $15-20/mt in the coming days. The daily index for bulk US-origin HMS 1&2 (80:20) settled at $500.63/mt cfr Turkey, up $9.63/mt on Monday.
The daily index for US-origin HMS 1&2 (80:20), Tuesday, rose $3.75/mt to $478.75/mt cfr Port Qasim. US suppliers have turned optimistic about East Asian demand as they diverted their attention from South Asia where demand and prices are lagging amid Eid holidays.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $475/mt cfr Port Qasim, up by $1/mt. Traders offered UAE-origin mixed #1 HMS and P&S at $480-485/mt cfr Qasim. UAE sellers could come under pressure to sell this week, and the quantum of increase in containerized scrap could be lower than the bulk market.
In the domestic market, trading of steel products, billet and rebar have halted. Large-scale rebar makers are optimistic about steel demand after Eid and could lift the asking prices for rebar amid high input costs due to firmness in the scrap market.
Rising HRC offers in the international market are supporting market sentiment despite weak sales. HRC offered above $1,000-1,030/mt cfr Pakistan from Chinese exporters.
($1=PKR152.08)