Most buyers returned to the imported ferrous scrap market and showed a willingness to raise their bids from the prior week’s levels. Some mills, however, still preferred to wait as they held enough scrap stock.
The daily Davis Index for containerized shredded, Tuesday, gained $1.69/mt to settle at $365.92/mt cfr Port Qasim, with prices reaching a two-year high. Trades for containerized EU and UK-origin shredded were at $364-366/mt cfr Port Qasim with asking prices subsequently touching $370/mt cfr Port Qasim. A shortage of shipping containers and material kept yards away from doling out offers. Collection rates could fall in the coming days due to severe winters in supplier countries.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $352/mt cfr Port Qasim, up by $3/mt from Monday. Trades for the grade were in the range of $350-352/mt cfr Port Qasim. Traders who had secured materials around a month ago at lower prices are offering HMS 1&2 (80:20) even at $355/mt cfr Port Qasim, citing bullish Indian market. Pakistan mills preferred shredded over HMS scrap to avoid paying extra taxes imposed on the imports of the latter. Trades for containerized Dubai-origin mixed #1 HMS and P&S sarya scrap were at prices above $355-360/mt cfr Port Qasim on Tuesday.
The index for US-origin HMS 1&2 (80:20), Tuesday, settled at $348.44/mt cfr Port Qasim, up by $2.51/mt from Monday. Containerized scrap offers from the US and UK were limited in anticipation of a bullish December market.
There were no offers from the South African suppliers for containerized ferrous scrap as their International Trade Administration Commission has decided to ban exports in support of the domestic industry.
Rebar prices stay strong on high scrap
A few mills were able to raise selling prices for rebar, albeit for limited quantities, as acceptance for higher prices increased.
In the domestic market, Bala billet prices were at PKR92,500-92,800/mt ($575-580/mt) ex-works Punjab on Tuesday. Rebar prices in the Southern region remained unchanged after rising PKR2,000/mt at PKR111,500/mt ex-works Karachi. In Punjab, G-60 rebar prices were at PKR109,500-110,000/mt ex-works on Monday. All mills canceled discounts on finished steel as they faced a cash crunch.
In the northern region, winter restrictions on some secondary rolling mills and furnaces, especially those without smog or carbon emission control machinery, have lowered output. Prices for Art Q toke scrap equivalent to mix HMS and P&S was at PKR70,500-71,000/mt ex-works Lahore, up PKR500/mt from late last week. Trades for the Pure Q Toke (shredded) concluded at PKR72,000/mt ex-yards.
($1=PKR160.93)