Pakistan ferrous scrap importers decided to defer purchases as the standoff between suppliers and buyers continued on Wednesday. Some mills still preferred to wait as they had enough scrap stock, but should the supply tightness continues for another two weeks, mills are likely to resume bulk inquires. Most US suppliers attempted to raise offers after the Thanksgiving holiday on November 26.  

 

The daily Davis Index for containerized shredded, Wednesday, inched up only by $0.01/mt to settle at $365.93/mt cfr Port Qasim, with prices reaching a two-year high. Trades for containerized EU and UK-origin shredded were at $365-367/mt cfr Port Qasim, with asking prices subsequently touching $370-375/mt cfr Port Qasim. A shortage of shipping containers and material kept yards away from doling out offers. Collection rates could fall in the coming days due to severe winters in supplier countries.  

 

The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $353/mt cfr Port Qasim, up by $1/mt from Tuesday. Trades for the grade were in the range of $350-355/mt cfr Port Qasim. Traders who had secured materials around a month ago at lower prices are offering HMS 1&2 (80:20) even at $355/mt cfr Port Qasim, citing bullish Indian market.  

 

Pakistan mills preferred shredded over HMS scrap to avoid paying extra taxes imposed on the imports of the latter. Trades for containerized Dubai-origin mixed #1 HMS and P&S sarya scrap were stable at prices above $355-360/mt cfr Port Qasim.  

The index for US-origin HMS 1&2 (80:20), Wednesday, settled at $349.29/mt cfr Port Qasim, up by $0.85/mt from Tuesday. Containerized scrap offers from the US and UK were limited in anticipation of a bullish December market. A few suppliers offered cast iron rotors and drums at prices above $380/mt cfr Qasim, up by $15/mt from a week ago.

 

There were no offers from the South African suppliers for containerized ferrous scrap as their International Trade Administration Commission has decided to ban exports to support domestic industry. Plunging collection rates are likely to keep West African suppliers away from any negotiations at least till January.   

 

In the domestic market, Bala billet prices were at PKR92,500-93,000/mt ($581-584/mt) ex-works Punjab on Tuesday. Trades, albeit limited, were reported for rebar after prices in the Southern region rose to PKR111,500/mt ex-works Karachi. In Punjab, G-60 rebar prices were at PKR109,500-110,000/mt ex-works. All mills cancelled discounts on finished steel as they are facing a cash crunch.  

 

Rerolling mills are shutting down due to non-payment and limited demand for finished products. Market conditions remain unsupportive for production.  

 

Demand remains weak while supply is tight due to the seasonal changes, however, price has also increased on high global offers and payment crunch, said a rolling mill owner.  

 

Prices for Art Q toke scrap equivalent to mix HMS and P&S was at PKR71,000/mt ex-works Lahore, stable from Tuesday. Trades for the Pure Q Toke (shredded) concluded at PKR72,000/mt ex-yard with a few attempting PKR72,500/mt ex-works.

($1=PKR159.2)

 

 

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