Demand for imported ferrous scrap in Pakistan continued to improve as mill ramped up their production. Some buyers though stayed away from purchases on increased offers. With the new cases of COVID-19 refusing to subside, steelmakers are worried about the possibility of stringent lockdown measures which could hit economic activities once again.
For the upcoming days, however, market sentiment is bearish. Banking and liquidity issues continue in the market. Some market participants believe that Pakistani currency could depreciate further as the IMF has mandated the country to clear some earlier loans through the upcoming budget. The country has allocated a development budget of PKR118bn for the National Highway Authority to be utilised for road infrastructure.
The Davis Index for US-origin containerized shredded settled at $292/mt cfr Port Qasim on Friday, flat from Thursday but up by $2/mt from the prior week. Bids for shredded were at $285-288/mt cfr Qasim on Friday, with some trades reported at $292-293/mt cfr Qasim. Most UK and European suppliers offered shredded at $294-295/mt cfr Qasim.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $273/mt cfr Qasim, unchanged from Thursday but up by $5/mt from a week ago. The Davis Index for UAE-origin #1 HMS settled at $280/mt cfr Port Qasim, up by $2/mt from the prior week. Offers for a mix of #1 HMS and P&S were at $280/mt cfr Qasim. But trades were reported at $275-278/mt cfr Qasim.
Most South African suppliers are struggling with export permits issues. Still, a few trades for South African HMS 1&2 (80:20) were reported at $268-270/mt cfr Qasim, marginally up from the prior week.
The index for US-origin HMS 1&2 (80:20) was at $276/mt cfr Qasim, flat from Thursday but up by $8/mt from the prior week. Most US yards raised their offers to $275-280/mt cfr Qasim for HMS 1&2 (80:20) following increased demand from Turkish mills. UK-origin bundles scrap traded at $230-235/mt cfr Qasim.
The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe settled at $261/mt cfr Qasim, up by $5/mt. Offers from European yards were at $265-270/mt cfr Port Qasim. But bids were at $260/mt cfr Qasim. The index for Latin American HMS 1&2 (80:20) settled at $260/mt cfr Qasim, up by $2/mt from the prior week.
The Davis Index for P&S settled at $288/mt cfr Port Qasim, up by $3/mt from the prior week. Trades for UK-origin P&S were at $290/mt cfr Qasim this week. The Davis Index for busheling was at $302/mt cfr Qasim, up by $1/mt from the prior week. Trades for busheling concluded at $300-302/mt cfr Qasim.
Pakistan’s domestic billet & rebar prices up
In the middle of this week, Pakistan finished steel prices rose by PKR3,000-4,000/mt ex-works on increased restocking in the market amid expectations of resumption in infra projects aided by the government. The weekly Davis Index for commercial Bala billet settled at PKR91,000/mt ex-yards Punjab inclusive of local taxes, up by PKR3,000/mt from the prior week. The Davis Index for G-60 billet settled at PKR 96,000/mt ex-Punjab plant, also up by PKR300/mt from the prior week.
The Davis Index for G-60 rebar settled unchanged at PKR112,000/mt ex-plant Karachi and PKR111,500/mt ex-plant Punjab, both up by PKR500/mt from the prior week.
Domestic ferrous scrap prices in Pakistan climbed again this week on limited availability. The weekly index for Art Pure Q equivalent to shredded settled at PKR67,500/mt ex-works. Offers for domestic mixed HMS and P&S scrap were at PKR68,500/mt delivered mill, up PKR500/mt from the prior week.