Pakistani mills exercised caution while making buying decisions this week with ferrous scrap prices on a decline. Domestic steel prices declined by over $50/mt and became the preferred choice for some mills.
The daily Davis Index for containerized shredded, Friday, dropped by $3.82/mt to $430/mt cfr Port Qasim. Prices fell $58.06/mt from the prior week. Mills targeted $425-430/mt cfr Port Qasim for shredded in containers for material from the UK/EU and the US.
Most traders and indenters looking to sell before prices drop further. After the decline in prices, mills in the South and North regions were in the market to restock ferrous scrap.
The daily index for US-origin HMS 1&2 (80:20) settled at $406.25/mt cfr Port Qasim, down $1.25/mt. Scrap prices have dropped by $45.25/mt from a week earlier. Some yards stayed away from making fresh offers amid the decline in prices, container unavailability, and limited vessel space.
Suppliers from the UAE offered #1 HMS and P&S at $395-400/mt cfr Port Qasim depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $395/mt cfr Port Qasim down $10/mt from Thursday, and by $52/mt from the earlier week.
Trades for HMS from the middle could pick up due to a gap of over $40-50/mt between HMS and shredded. Availability from the region has eased with the four-month ban ending.
The weekly Davis Indexes for P&S 5ft and #1 busheling settled at $448/mt and $475/mt cfr Port Qasim, respectively, down $40/mt and $28/mt, respectively. Trades for busheling were at $490/mt cfr Port Qasim early this week which subsequently fell below $470-475/mt cfr Qasim on Friday.
Rebar demand stable on infrastructure demand
A few mills offered discounts on steel products. The Davis Index for G-60 billet settled at PKR102,500/mt ex-works Punjab, down PKR12,500/mt from Jan 15. In Lahore, G-60 billet traded at PKR102,500-103,500/mt ex-works. The weekly index for domestic Bala billet decreased PKR9,750/mt to PKR94,000/mt ($585/mt) ex-works.
All major rebar makers kept their asking rates for rebar firm, as they procured ferrous scrap earlier when the market was bullish. But some secondary mills reduced prices down this week, pulling the index down. Large mills could lower prices if ferrous scrap prices drop by another $25-30/mt, believe traders.
The weekly Davis Index for rebar G-60 dropped by PKR2,500/mt to PKR135,000/mt ex-works Karachi, while in Punjab, the index decreased PKR2,000/mt to PKR129,500/mt ex-works. Some small rebar makers offered at PKR108,000-110,000/mt ex-works.
Domestic scrap tumbles
The weekly index for Art Q toke scrap equivalent to a mix of HMS and P&S Friday dropped by PKR7,250/mt ($45/mt) to PKR77,000/mt ex-yard Lahore. The weekly index for Pure Q Toke (shredded) dropped by PKR7,000/mt to PKR78,500/mt ex-yards amid falling imported scrap prices. Trades for scrapped vessels picked up this week as offers dropped below $400/ldt cfr Pakistan.