Pakistani mills and ferrous scrap adopted a ‘wait and watch’ approach on Monday. The impact of shipping lines’ stance to lower free days in Pakistan, among other Asian countries, is unclear. On the other hand, global prices are going up with no peak in sight.
The daily Davis Index for containerized shredded, Monday, rose by $12.06/mt to settle at $425.36/mt cfr Port Qasim. Most indications for UK/EU-origin shredded at $425-430/mt cfr Port Qasim while buying interest heard at around $415/mt cfr. Before shuttering their yards for Christmas and New Year holidays, European suppliers continued to target high prices amid a supply crunch.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $405/mt cfr Port Qasim, up by $12/mt from Friday. Offers for HMS 1&2 (80:20) heard at $400-410/mt cfr Qasim amid an acute shortage of materials. Demand for rebar in UAE remains high, which has shifted suppliers’ focus to the domestic market amid better realisations. Offers for Dubai-origin containerized mixed #1 HMS and P&S sarya rose to $405-410/mt cfr Port Qasim, jumping up by $20/mt over the weekend.
The index for US-origin HMS 1&2 (80:20), Friday, settled at $406.25/mt cfr Port Qasim, up by $14.11/mt from Thursday. Finished steel prices are strong in Turkey, the US, and the CIS region. Chinese HRC is priced above $680-700/mt cfr Pakistan on positive global cues. Turkish mills are offering material at $730/mt cfr while the US-based mills are targeting $800/mt Port Karachi, said leading HRC importer in Pakistan. According to market participants, steel prices in Pakistan have increased by PKR2,000-3,000/mt, which could hurt the construction sector.
Domestic rebar prices stable
In the southern region, rebar prices rose despite strong resistance from buyers. Rebar traded flat at PKR117,000-118,000/mt ex-works Karachi on Monday. In Punjab, G-60 rebar prices heard at PKR115,000-115,500/mt ex-works on Monday.
Bala billet prices lost steam amid weak demand and trades reported at PKR91,500-93,000/mt ($571-580/mt) ex-works Punjab. Prices dropped by PKR1,000-1,500/mt as end-user demand remained slow. Many traders and stockists offered discounts to encourage sales. Despite rising prices, steel demand remains unsupportive of production ramps. Many small mills could also cut production in winter.
Prices for Art Q toke scrap equivalent to a mix of HMS and P&S flat at PKR73,000-73,500/mt ex-works Lahore. Trades for the Pure Q Toke (shredded) heard at PKR74,300-74,800/mt ($457-461/mt) ex-yards, with offers rising above PKR75,000/mt ex-yards.
In the shipbreaking market, scrapped tankers and containers offers heard at $420-440/ldt cfr Pakistan.