Imported scrap prices in Pakistan remained on a downtrend following global cues. Prices have declined by $40-45/mt in the last two weeks. Slow domestic steel sales kept scrap trades on hold. Mills with low inventories bought in small volumes to manage operations.
The daily Davis Index for containerized shredded, Wednesday, dropped by $3.63/mt to $404.58/mt cfr Port Qasim. A few sellers sold shredded from the US and UK/EU at $400-405/mt cfr Port Qasim. While some yards held offers firm at $410-415/mt cfr Port Qasim citing strong domestic demand in the supplier countries.
Only a few deals for imported ferrous scrap could materialize in Pakistan since most sellers are unwilling to match low bids amid tight supply, elevated processing cost for shredded and high freight rates. Buyers preferred to wait for an uptick in domestic steel price before restocking.
In Turkey, the availability of lower-priced ship breaking scrap kept mills away from the market. In absence of trades, bids dropped below $400/mt cfr Turkey for HMS 1&2 (80:20) on Tuesday.
The daily index for US-origin HMS 1&2 (80:20) settled at $379.29/mt cfr Port Qasim down $4.28/mt. There is a possibility of a drop in the US ferrous scrap prices by around $50/mt in February amid easing supply on improved collection rates, said market participants.
Traders from UAE offered #1 HMS and P&S at $380-385/mt cfr Port Qasim, depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, settled at $371/mt cfr Port Qasim down $2/mt. A few traders from the UAE refuse to lower offers. While mills target $365-370/mt cfr Qasim for Dubai-origin HMS 1&2 (80:20).
Domestic steel at a standstill
Domestic steel prices and sales were at a standstill on Wednesday. Few traders anticipate demand to return in the coming days. On Wednesday, domestic Bala billet prices were at PKR95,000-96,000/mt ex-works Lahore, largely stable. Asking price for G-60 rebar were at PKR130,000/mt ex-works, while local rebar traded at PKR110,000-112,000/mt ex-works. Domestic Art Q toke scrap equivalent to a mix of HMS and P&S offered at PKR78,000-78,500/mt ex-works Lahore.
($1=PKR160.40)