On Friday, a few ferrous scrap importers in Pakistan resumed bookings after the Eid-al-Adha holidays earlier this week. Offers firmed up as the recovery in demand instilled positive sentiment.
The depreciation of Pakistani currency is likely to raise domestic steel prices. Pakistani Rupee was at PKR161.42 against $1 from PKR159.5 on the prior Friday.
The daily Davis Index for containerized shredded, Friday, rose by $2.5/mt to settle at $544.25/mt cfr Port Qasim with deals at increased prices. The index rose by $1.25/mt from last Friday. Some trades for shredded were reportedly at $545/mt cfr Qasim after buyers returned from the Eid holidays. Many traders, however, kept asking prices at $550/mt cfr Qasim.
In Turkey, mills could resume bulk purchases for remaining August and September shipments from Monday. Indications for the US-origin HMS 1&2 (80:20) were unchanged in the range $483-485/mt cfr Turkey.
Sellers in the UAE could return to the market on Monday. In a silent market, the daily Davis Index for UAE-origin HMS 1&2 (80:20) settled unchanged at $500/mt cfr port Qasim. Expectations for UAE-origin mixed #1 HMS and P&S were unchanged at $510-515/mt cfr Port Qasim.
The daily index for US-origin HMS 1&2 (80:20), Friday, settled at $502.5/mt cfr Port Qasim also unchanged from a day ago, but down $5/mt from the prior Friday. Container freights rates remained elevated, keeping landed prices supported despite a dip in asking prices from supplier countries.
From prior Friday, the Davis Index for P&S 5ft fell by $1/mt to settle at $550/mt cfr while the index for #1 busheling was at $570/mt cfr Port Qasim, also down by $1/mt. The supply of high-grade scrap remains tight, but demand has shrunk weighing down prices on the US East Coast.
The announcement of price hikes for rebar before markets shut for Eid holidays pushed the weekly Davis Indexes for rebar to PKR160,500/mt ex-works Karachi and PKR159,500/mt ex-works Punjab, both up by PKR4,500/mt from July 16. Local rebar offers were above PKR145,000-146,000/mt ex-works Lahore.
Most mills shifted their focus to clearing utility bills in the last week of the month amid low liquidity. The peak monsoon season could pass by next week, believe participants. This, along with historical strong demand post-Eid is likely to boost steel and ferrous scrap trades in the coming days.
The weekly index for domestic Bala billet rose PKR2,500/mt ($16/mt) to PKR130,000/mt ($806/mt) ex-works. The weekly Davis Index for G-60 billet was at PKR141,000/mt ex-works Punjab, up PKR4,500/mt from the prior Friday.
The weekly indexes for Art Q toke scrap (equivalent to a mix of HMS and P&S) rose by PKR1000/mt to PKR100,500/mt ex-yard Lahore and Pure Q toke scrap (equivalent to shredded) rose by PKR1,500/mt to PKR102,500/mt ex-yard Lahore.
For Gadani shipbreakers, offers of scrapped vessels were at $580-590/ldt cnf Qasim, unchanged from the prior week.