Pakistan imported scrap prices registered further uptick following increased rebar demand. After a long gap, indications of a strengthening construction sector pushed up rebar trades which led to active enquiries for imported scrap despite high offers. But very few suppliers offered imported scrap.
The daily Davis Index for containerized shredded Tuesday rose by $2.37/mt from Monday to settle at $375.93/mt cfr Port Qasim Tuesday. Trades for containerized EU/UK-origin shredded heard at $373-377/mt cfr Port Qasim with offers above $380/mt cfr Port Qasim. A shortage of containers with shipping companies and scrap at yards has kept many suppliers away from the market. Few European suppliers plan to shut operations from mid-December till the first week of January on account of Christmas and New Year holidays.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $364/mt cfr Port Qasim, up by $2/mt from Monday. Trades for the grade heard at $360-365/mt cfr Port Qasim. Traders are offering HMS 1&2 (80:20) even above $365-370/mt cfr Port Qasim citing bullish global markets. Dubai-origin containerized mixed #1 HMS and P&S sarya scrap traded above $365-370/mt cfr Port Qasim on Tuesday gaining $10/mt from the prior week.
The index for US-origin HMS 1&2 (80:20), Tuesday, settled at $361.64/mt cfr Port Qasim up by $3.07/mt from Monday. US suppliers diverted their attention to fulfilling Turkish bulk orders in hand. Finished steel demand is strong in Turkey and there is a possibility of a further rise in the coming days.
There were no offers for containerized scrap from South Africa as their International Trade Administration Commission has decided to ban exports of ferrous scrap to support the domestic industry.
Domestic rebar offers rise upto PKR3,000/mt
In the domestic market, Bala billet prices jumped up PKR500-1,000/mt to PKR94,000-94,500/mt ($583-587/mt) ex-works Punjab from the prior week. Trades for billet reported at index prices amid recovering demand.
Rebar makers decided to pass high input costs to end-users to offset high imported scrap prices. Mills raised offers for rebar by upto PKR3,000/mt from the prior week. Also, the growing strength of the Pakistani rupee against the US dollar helped domestic prices. PKR appreciated below 160 marks against the dollar.
Finished steel prices rose in Pakistan amid economic packages of PKR1 trillion and PKR100bn announced in Punjab and Khyber Pakhtunkhwa, respectively, for housing and construction projects. Naya Pakistan Housing Programme (NPHP) can potentially create 6-7mn mt of demand for long steel assuming the government builds 50pc of the promised houses.
Trades for rebar started recovering in the Southern region at PKR114,500-115,000/mt ex-works Karachi. In Punjab, G-60 rebar prices were at PKR113,000-113,500/mt ex-works. Prices rose by PKR2,500-3,000/mt since mid-November. Mills cancelled discounts on finished steel as they face a cash crunch.
Domestic ferrous scrap prices in Pakistan maintained an uptrend on the back of bullish global cues. Prices for Art Q toke scrap equivalent to a mix of HMS and P&S were at PKR71,800-72,000/mt ex-works Lahore, inching up by PKR500/mt from Monday. Trades for the Pure Q Toke (shredded) heard at PKR73,000-73,500/mt ex-yards with offers moving up to PKR74,000/mt ex-yards on Tuesday.
($1=PKR159.65)