Pakistani ferrous scrap importers turned a bit optimistic on Friday, after an uptick in Chinese steel prices. Market participants expect a rebound in scrap prices. Buyers may return if prices pick pace, traders said.
The daily Davis Index for containerized shredded, Friday, settled unchanged at 508.75/mt cfr Port Qasim from Thursday and down by $6.5/mt from the prior Friday. Offers dropped to $505-510/mt cfr Qasim but suppliers are largely silent. A few deals heard at $510-512/mt cfr Qasim early in the week.
On the other hand, scrap prices in Turkey slid amid sluggish demand. Steel producers halted booking hoping for a correction. Turkish mills have also lowered their rebar offers to Asia turning up the heat for competitors. Turkish buyers targeted $495-500/mt cfr for HMS 1&2 (80:20) on lower domestic steel prices. The daily Davis Index for imports of US-origin HMS 1&2 (80:20) declined by $5.33/mt to $506.67/mt cfr Turkey on Thursday. Turkish mills lowered rebar export offers by $10/mt to $770/mt fob.
A recovery in domestic steel prices in China after successive fall in the past two weeks gave market participants reason to expect a rebound. Domestic demand failed to encourage more restocking and mills are still limiting their purchases to immediate melt requirements.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, fell to $480/mt cfr Port Qasim, down $4/mt from Thursday but the index slipped $22/mt from last Friday. Offers for UAE-origin mixed #1 HMS and P&S dropped driven by lower bids by Indian buyers.
The daily index for US-origin HMS 1&2 (80:20), Friday, settled at $486.25/mt cfr Port Qasim, down $1.25/mt. The index dropped by $23.6/mt from the prior Friday.
The Davis Index for P&S 5ft and #1 busheling on Friday settled at $524/mt and $550/mt cfr Port Qasim, respectively, down $6/mt from the prior Friday. Offers for high-grade scrap remained firm amid tight supply.
Steel prices up but trades lag
In the domestic market, steel trades remained slow but high input costs spiked asking rates. The index for domestic Bala billet rose by PKR3,500/mt to PKR116,000/mt ($747.9/mt) ex-works. The weekly Davis Index for G-60 billet rose to PKR123,500/mt ex-works Punjab, up PKR6,500/mt from prior Friday.
Local rebar offered at PKR131,000/mt ex-works, with prices moving up by PKR1,000/mt from the prior week. The weekly Davis Indexes for rebar rose to PKR143,000/mt, up PKR250/mt ex-works Karachi and PKR141,500/mt ex-works Punjab, up PKR5,000/mt.
Domestic ferrous scrap supply remained tight. The weekly indexes for Art Q toke scrap equivalent to a mix of HMS and P&S and Pure Q toke scrap (equivalent to shredded), Friday, settled at PKR96,000/mt and PKR96,000/mt ex-yard Lahore, up PKR4,000/mt, respectively.
The Pakistani rupee, Friday, depreciated to near PKR155.09 against the US dollar from PKR153.5 last week.