Pakistani mills showed resistance to accept high offers as demand slowed at high offers on Tuesday. Buyers’ sentiments were mixed on weak domestic demand and liquidity crunch amid the due date to pay-off electricity bills. Offers continued to rise as anticipated by traders. Ahead of Ramadan in April-end, most mills are expected to actively restock scrap.
The daily Davis Index for containerized shredded, Monday, rose by $1.25/mt to $460/mt cfr Port Qasim. Pakistani buyers were willing to pay higher than their Indian and Bangladeshi counterparts. A few trades for shredded concluded at $453-455/mt cfr Port Qasim pushing offers up to $460-465/mt cfr Qasim on Monday. UK-origin electric motors sold at $1,200/mt cfr Qasim on rising demand.
In Turkey, the daily index for HMS 1&2 (80:20) settled at $434.8/mt cfr Turkey on Monday. Most yards were offering bulk shredded above $440-445/mt cfr Turkey. Prices could reach $450-455/mt cfr Turkey in the near terms amid robust domestic rebar demand.
The index for US-origin HMS 1&2 (80:20) settled at $421.25/mt cfr Port Qasim, up by $3.96/mt from Friday. Amid bullish domestic outlook for March, only a few exports offer of containerized HMS 1&2 (80:20) heard at $420-425/mt cfr Port Qasim.
Offers for #1 HMS and P&S from UAE at $430-435/mt cfr Port Qasim depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20) was up by $5/mt at $425/mt cfr Port Qasim. Trades for containerized UAE-origin HMS 1&2 (80:20) at $420-425/mt cfr Port Qasim. Mills opted for Dubai-origin HMS 1&2 (80:20) over high-priced shredded offers.
Domestic billet turns down
Steel mills struggled amid strong resistance to higher prices In the domestic market. Trades halted at higher levels forcing billet makers to lower their asking rates. On Tuesday, billet prices fell by PKR1,000/mt ($6.29/mt) to dropped at PKR101,000-101,500/mt ex-works. G-60 billet offered at PKR110,000-111,000/mt ex-works Punjab.
For rebar, mills continued to ask in the range PKR127,500-128,000/mt ex-works Karachi, while in Punjab, around PKR125,500-126,000/mt ex-works. Trades remained subdued.
Domestic scrap loses steam
Offers for Art Pure Q toke scrap equivalent to a mix of HMS and P&S Tuesday lost steam despite high imported scrap prices. Prices for the grade at PKR80,000-80,500/mt ex-yard Lahore. Trades for the Pure Q Toke equivalent to shredded reported in the range of PKR81,500-82,000/mt ex-yards, down PKR1,500/mt from Friday.