Imported ferrous scrap prices in Pakistan continued to recover gradually. For containerized scrap sellers, Pakistan was the most attractive market in the Indian sub-continent amid lucrative bids. This week, inquiries from Bangladesh and India are expected to pick up and support prices.
The market was optimistic with COVID-19 spread slowing and steel demand showing signs of recovery. Finished steel plate prices remained elevated as the absence of China in the export market offered support to other Asian sellers.
The daily Davis Index for containerized shredded, Monday, rose by $1/mt to settle at $525/mt cfr Qasim. On Monday, most offers were at $525-530/mt cfr Qasim for the UK/EU-origin shredded. A few deals late last week were at $525/mt cfr Qasim for the UK-origin material and at $520/mt cfr Qasim for that of EU-origin. But market participants are waiting for more deals at these levels to confirm a rise in prices.
In Turkey, the daily Davis Index for bulk imports of US-origin HMS 1&2 (80:20) was at $446.36/mt cfr Turkey Friday, up by $0.61/mt from the preceding day. On Monday, the labor day holiday in the US could pause trade negotiations.
The daily index for containerized US-origin HMS 1&2 (80:20) settled at $486.25/mt cfr Port Qasim on Monday, up by $1.25/mt from Sep 6. There was a decline of $25-50/gt for the US domestic September ferrous scrap settlements against August. But on the improving demand and higher containerized freight charges, offers rose by $3-5/mt from the US, especially from the West Coast suppliers.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) inched up by $1/mt amid optimism over demand recovery to $486/mt cfr port Qasim. Offers for UAE-origin mixed #1 HMS and P&S Monday were at $500-505/mt cfr Port Qasim.
Lower sales volumes pressured local rebar prices despite a rise in branded rebar’s asking prices. Commercial rebar traded at PKR156,000-157,000/mt ex-works amid weak construction demand, down PKR1,000-2,000/mt from last week.
For domestic billet, trades decelerated with the weakening demand for rebar. For domestic Bala billets, offers dropped by PKR2,000/mt from Friday to PKR138,500/mt ($828.9/mt) ex-works.
In the domestic market offers for scrap increased on tight supply and healthy demand. For Art Q toke scrap (equivalent to a mix of HMS and P&S) offers rose to PKR110,000/mt ex-yards Lahore, while those for Pure Q toke scrap (equivalent to shredded) rose by PKR500/mt to PKR112,000/mt ex-yards Lahore.
Demolition activities in the Gadani were halted recently as yards are waiting for scrap prices to bottom out. Offers for scrapped vessels were unchanged in the range of $570-590/ldt cnf Gadani yards.
($1=PKR167.08)