Inquiries in Pakistan remained high and a few trades reported at prices which were $5-10/mt higher than early last week. Economic activities are expected to gain momentum with a resumption in housing projects and incentives announced by the government to mitigate the COVID-19 impact.
The Davis Index for US-origin containerized shredded settled at $313.33/mt cfr Port Qasim on Friday, up by $1.61/mt from Thursday and by $8.62/mt from a week ago. Trades for shredded from Europe and the US were at $308-312/mt cfr Port Qasim. Shredded from the UK was heard booked at $313-315/mt cfr Port Qasim.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $299.50 /mt cfr Port Qasim, up by $1.29/mt from Thursday and by $3.25/mt from a week ago. Super scrap or a mix of #1 HMS and P&S from UAE traded at $305-310/mt cfr Port Qasim, depending on the quality.
The index for US-origin HMS 1&2 (80:20) was at $295/mt cfr Port Qasim, up by $2.50/mt from Thursday and $9.97/mt from a week ago, with trades in the range of $292-295/mt cfr Port Qasim. A few US yards were offering HMS 1&2 (80:20) at $300/mt cfr Port Qasim on Friday.
The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe settled at $286/mt cfr Port Qasim, up by $6/mt. Few trades were reported at the index price with offers at $285-290/mt cfr Port Qasim.
The index for Latin American HMS 1&2 (80:20) settled at $290/mt cfr Port Qasim, up by $5/mt from the prior week and trades concluded at the index price. A rise in the number of offers and prices from Brazilian suppliers was also marked this week. Offers for LMS bundles were at $260-265/mt cfr.
The weekly Davis Index for P&S and busheling settled at $310/mt and $320/mt cfr Port Qasim, up by $3/mt and $4/mt, respectively. Trades for these high grades remained thin due to a supply of HMS scrap from UAE and South America at lower prices.
Steel prices in Pakistan were supported by bullish imported ferrous scrap prices. Late last month, most market participants were expecting a correction in imported ferrous scrap which could have pulled down domestic steel prices. However, international prices rose further this month thus aiding steel price.
Most government projects have resumed in the country as COVID-19 restrictions have almost been withdrawn.
The weekly Davis Index for commercial Bala billet settled at PKR92,500/mt ($553/mt) ex-works Punjab on Friday, inclusive of local taxes, up by PKR250/mt from the prior week. Trades concluded in the range of PKR92,000-92,500/mt ex-works, up by PKR5,000/mt amid strengthened domestic fundamentals. The Davis Index for G-60 billet settled at PKR97,000/mt ex-works Punjab, up by PKR250/mt from the prior week.
The weekly Davis Index for G-60 rebar settled at PKR112,500/mt ($669.25/mt) ex-works Karachi, up by PKR500/mt. Rebar trades concluded at PKR112,500/mt ex-works Karachi this week. Steel production in the Karachi region remains hit by limited labor availability.
In Punjab, G-60 rebar prices were unchanged in the range PKR112,000-113,000/mt ex-works from the prior week.
Domestic ferrous scrap prices in Pakistan increased in line with higher imported scrap offers. The weekly index for Art Pure Q equivalent to shredded settled at PKR72,000/mt ex-yards, up by PKR500/mt. Trades for domestic mixed (HMS and P&S) scrap were at PKR72,500-73,000/mt del Lahore mill over this week, on improved demand in the country.