Pakistan steelmakers continued to book ferrous scrap in limited quantities. Operations in most regions have resumed with lockdown restrictions eased. Many buyers were away from the market due to the ongoing Eid holidays. Bookings are expected to rise after the Eid festival ends on May 31.
The daily Davis Index for US-origin containerized shredded settled flat at $279/mt cfr Port Qasim on Friday, up by $6/mt. Trades for shredded from the UK were at $277-280/mt cfr Qasim. On Friday, offers moved up to $285/mt cfr Qasim, following bullish global bulk markets. Suppliers expect prices to climb further as Turkish mills have resumed activities.
The daily Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $255/mt cfr Qasim, up by $5/mt. South African suppliers have resumed offers to Pakistan and India. HMS 1&2 (80:20) traded at $255/mt cfr Qasim, up by $5/mt from the prior week.
The index for US-origin HMS 1&2 (80:20) was at $255/mt cfr Qasim, up by $7/mt from Thursday. Bids from mills were in the range of $250/mt cfr Qasim for July shipments. Some steel mills were unable to open new LCs as they looked to clear utility bills before Eid holidays.
The Davis Index for Dubai-origin #1 HMS settled at $265/mt cfr Port Qasim, up by $2/mt from the prior week. Offers for a mix of #1 HMS and P&S were at $265-270/mt cfr Qasim. Containerised HMS 1&2 (80:20) from UAE was offered at $250-255/mt cfr Qasim. The government of Dubai released a clarification stating steel scrap exports would be banned for four months and could be extended further to support domestic industry.
This week, trades for LMS scrap reported at $225/mt cfr Qasim, up by $10/mt from the prior week. The Davis Index for P&S settled at $273/mt cfr Port Qasim, up by $5/mt from the prior week. P&S from Brazil and the United Kingdom traded at $270/mt cfr Qasim, up from the prior week. Dubai suppliers offered HMS and P&S mixed at $250-255/mt cfr Qasim. The index for busheling settled at $286/mt cfr Port Qasim, up by $8/mt from the prior week.
Busheling traded at $285-290/mt cfr Qasim, up by $10/mt from the prior week. Containerised HMS 1&2 (80:20) from the UK and US was offered at $235-240/mt cfr Port Qasim, unchanged from the prior week. Latin American HMS 1&2 (80:20) traded at $245/mt cfr Qasim, up by $5/mt from the prior week.
Pakistan’s domestic billet & rebar prices to drop
The weekly Davis Index for commercial Bala billet settled at PKR88,000/mt ex-yards Punjab inclusive of local taxes, up by PKR500/mt from the prior week. Steelmakers hiked prices amid rising ferrous scrap prices. But if the weak demand persists, steel prices are expected to drop in the coming days. Mills, however, are expecting a strong finished steel demand after Eid holidays.
The Davis Index for G-60 billet settled at PKR 94000/mt cfr Qasim, up by PKR500/mt from the prior week. The Davis Index for G-60 rebar settled unchanged at PKR112,500/mt ex-plant Karachi and PKR112,000/mt ex-plant Punjab, both up by PKR500/mt from the prior week.
Domestic ferrous scrap prices in Pakistan increased on limited availability. The weekly index for Art Pure Q scrap equivalent to shredded settled at PKR 66,500/mt ex-works, up by PKR500/mt from the prior week. Offers for domestic mixed HMS and P&S were at PKR68,000/mt delivered mill.
($1=PKR171.75)