Imported ferrous scrap offers to Pakistan showed a large disparity this week. Leading yards in supplier countries are holding material awaiting for a rebound in prices. While a few distressed sales were reported at $15-20/mt below last week’s levels. Overall, offers on Friday indicated signs of revival. Traders expect offers to stay firm next week.
The Pakistani rupee hit an eleven-month low of PKR166.47 against the US dollar on Friday. Last Friday, it was at PKR164.34. Domestic steel and scrap prices could remain firm on currency depreciation despite slow demand.
The daily Davis Index for containerized shredded on Friday dropped by $5/mt to settle at $520/mt cfr Qasim and declined by $19/mt from last Friday. After a few deals at $512-520/mt cfr Qasim sellers came under pressure early this week, but offers rebound to $520-525/mt cfr in the second half of the week amid resistance from suppliers. After a long gap, buyers in India, where demand is stable, are paying higher than Pakistanis.
In Turkey, the daily Davis Index for bulk imports of US-origin HMS 1&2 (80:20) unchanged at $450.50/mt cfr Turkey after most sellers refused bids below $450/mt cfr.
Demand for the UAE origin HMS was healthy in India but lowered in Pakistan. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $490/mt cfr port Qasim, down $3/mt. The index dropped by $5/mt from Aug 20. Trades for UAE-origin mixed #1 HMS and P&S were reported again at $505/mt cfr Port Qasim.
The daily index for US-origin HMS 1&2 (80:20) settled at $487.5/mt cfr Port Qasim on Friday, down $2.5/mt from Thursday and the same was lower by $6.25/mt from Aug 20. Demand for long transit material remained low in South Asia despite easing supply. Containerised prices in the supplier countries too showed mixed trends.
The Davis Index for P&S 5ft dropped by $15/mt from previous Friday to settle at $525/mt cfr while the index for #1 busheling dropped by $17/mt to $538/mt cfr Port Qasim. Trades for high grades remained scare as few buyers expressed buying interest at high offers.
Rebar
Lower volumes of rebar sales led to a slight decline in asking prices. Local commercial rebar traded at PKR159,000/mt ex-works. Demand is expected to pick up from mid-September as the monsoon recedes and new infrastructural demand emerges in the country.
The weekly Davis Index for rebar was at PKR172,000/mt ex-works Karachi, down PKR1,000/mt on Friday. The weekly index for rebar dropped by same to PKR170,000/mt ex-works Punjab from Aug 20.
Billet
The weekly index for domestic Bala billet inched up by PKR250/mt to PKR140,500/mt ($843/mt) ex-works on Friday. The weekly Davis Index for G-60 billet was at PKR148,000/mt ex-works Punjab, on Friday, down by PKR500/mt in absence of major buying interest.
Domestic scrap
The weekly index for Art Q toke scrap (equivalent to a mix of HMS and P&S) increased by PKR1,000/mt to PKR109,000/mt ex-yards while Pure Q toke scrap (equivalent to shredded) rose by PKR750/mt to PKR111,250/mt ex-yard Lahore, respectively, amid tight supply.
Demolition activities in the Gadani were slow. Scrapped vessel offers dropped by $20-25/ldt but yet above buyers’ expectations.
($1=PKR166.49)