Imported scrap prices in Pakistan started to gain this week due to an increase in Turkish imported scrap prices. Most mills halted bookings as they wait for more clarity on the global market fundamentals. Due to cash constraints, some traders were away from imports until sales pick up in the domestic markets.
Heavy rains in the Karachi and nearby regions for the last three days has also halted scrap trading in Pakistan. The Muharram festival on Saturday and Sunday is expected to have little or no impact on prices. Domestic steel prices are expected to fall as mill operates at 100pc capacity amid insufficient domestic demand.
The Davis Index for containerized shredded settled at $314/mt cfr Port Qasim on Friday, up by $1/mt from Thursday and by $6/mt from the prior Friday. Trades for the UK-origin shredded were at $314-315/mt cfr Qasim, while EU-origin shredded was heard to be sold at $310-312/mt cfr Qasim. Offers on Friday were at $315-317/mt cfr Qasim but buyers showed little interest in those price levels. Most mills looked for lower-priced scrap but sellers held onto their material hoping for prices to rise in the coming days.
The Davis Index for HMS 1&2 (80:20) from UAE settled at $299/mt cfr Port Qasim, up by $1.33/mt from Thursday and by around $1/mt from a week ago. UAE-origin super scrap or a mix of #1 HMS and P&S traded at $305-310/mt cfr Port Qasim, depending on quality.
The index for US-origin HMS 1&2 (80:20) was at $298/mt cfr Port Qasim, up by $3/mt from Thursday but unchanged from a week ago. Trades were reported at around $290-293/mt cfr Port Qasim early in the week. A few US yards offered HMS 1&2 (80:20) at $295-298/mt cfr Port Qasim on Friday.
The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe settled at $291.5/mt cfr Port Qasim, up by $1.5/mt. A few trades were reported at the index price. Offers were at $295/mt cfr Port Qasim.
The index for Latin American HMS 1&2 (80:20) settled at $295.42/mt cfr Port Qasim, up by $2.42/mt from the prior week and trades concluded at the index price.
The Davis Index for P&S and busheling settled at $316/mt and $328/mt cfr Port Qasim, both up by $2/mt, from the prior week. Brazilian and UK-origin busheling traded at the index price, despite offers of $330/mt cfr Port Qasim on Friday.
Domestic steel prices dropped marginally in Pakistan despite an increase in imported ferrous scrap prices. The weekly Davis Index for commercial Bala billet, Friday, settled at PKR91,000/mt ($543.6/mt) ex-works Punjab, inclusive of local taxes, down by PKR1,000/mt from the prior week. Trades concluded at PKR91,000-91,500/mt ex-works. Buyers reduced purchase volumes due to a cash crunch.
The Davis Index for G-60 billet settled at PKR96,500/mt ex-works Punjab, down by PKR500/mt from the prior week.
The weekly Davis Index for G-60 rebar settled at PKR111,500/mt ($666.07/mt) ex-works Karachi, down by PKR1,000/mt. Heavy rains impacted trades in the country. Rebar trades concluded at PKR111,500/mt ex-works Karachi this week. In Punjab, G-60 rebar prices dropped to PKR111,500-112,000/mt ex-works from the prior week amid sluggish demand.