Pakistani mills attempted to pull down prices by lowering bids. A few deals concluded at lower prices, however, yards resisted lower bids. Sellers anticipate limited downside and believe prices are already nearing the bottom.
On Tuesday, Chinese steel prices recovered further which improved sentiments in most Asian markets.
The daily Davis Index for containerized shredded on Tuesday inched down by $1/mt to $529/mt cfr Qasim. Trades for containerized shredded were reported at $526/mt, $528/mt and $530/mt cfr Qasim, albeit in smaller quantities than usual. While on Tuesday a few offers were firm at $530-535/mt cfr Qasim.
Mixed sentiments on the domestic market pushed most participants into ‘wait and watch mode. On Monday, a few buyers were interested to book shredded at $525-530/mt cfr Qasim but sellers decided to hold on to the material.
Following softening domestic scrap prices, Turkish mills lowered bids for imported scrap. In the bulk market, the daily index was unchanged for HMS 1&2 (80:20) US origin at $449.85/mt cfr Turkey as Turkish mills went silent.
Lowered buying interest for HMS weighed on the UAE-origin ferrous scrap offers. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $488/mt cfr port Qasim, down $3/mt from Monday. Trades for UAE-origin mixed #1 HMS and P&S dropped below $505/mt cfr Port Qasim.
The daily index for US-origin HMS 1&2 (80:20) settled at $487.5/mt cfr Port Qasim on Tuesday, down $2.5/mt from Monday. Falling global ferrous scrap prices on easing availability amid subdued demand for long transit materials in South Asia pressured prices down.
In Pakistan’s domestic market, activity strengthened further on Tuesday. Domestic Bala billet prices rose to PKR141,500-142,000/mt ex-works, up PKR1,500-2,000/mt.
For Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded) prices firmed up by PKR500/mt to PKR108,500/mt and PKR111,000/mt ex-yard Lahore, respectively, amid tight supply and elevated steel prices.
Domestic rebar prices rose following changes in sale taxes.