Pakistani ferrous scrap importers turned silent following a continued drop in prices. Most buyers have withdrawn bids and adopted a wait-and-watch strategy. In Turkey, steel producers resumed imported scrap bookings at prices lower than the latest deals indicating a softness. Turkish mills have also lowered their rebar offers to Asia turning up the heat for competitors.
The daily Davis Index for containerized shredded, Wednesday, settled at $508.75/mt cfr Port Qasim, down $2.81/mt as buyers showed little interest in concluding deals. Offers dropped to $505-510/mt cfr Qasim but suppliers rued that buyers are refusing to bid. A few deals heard at $510-512/mt cfr Qasim early in the week.
A sharp fall in Chinese steel prices as the government warned steelmakers of strict action against speculator and hoarders have dampened sentiments in South Asian markets.
Turkish rebar asking rates are below $780/mt fob. The daily Davis index for US-origin HMS 1&2 (80:20), Wednesday, fell by $1.19/mt to settle at $512/mt cfr Turkey.
UAE-based yards cut prices to boost trades. The daily Davis Index for UAE-origin HMS 1&2 (80:20) fell by $9/mt to settle at $484/mt cfr Port Qasim. Sellers were pressurized by Indian bids at $465-470/mt cfr Nhava Sheva.
The daily index for US-origin HMS 1&2 (80:20), Wednesday, settled at $487.5/mt cfr Port Qasim, down $7.5/mt. Although supplier yards preferred to sell in their domestic markets, mills buying interest plunged below $485-490/mt cfr Qasim. Mills were largely away from US-origin HMS and preferred to secure material from short-transit routes.
In the domestic market, Art Pure Q Toke scrap equivalent to shredded offers at PKR96,500/mt ($622/mt) ex-yards. On Thursday, Bala billet prices fell PKR1,000/mt to PKR116,000-116,500/mt ex-works from Wednesday, while continuous casting billets priced at PKR124,500-125,000/mt ex-works, down PKR500/mt ex-works on Thursday.
Offers for G-60 rebar at PKR142,000/mt ex-works Lahore, while asking prices of small-scale steelmakers’ rebar at PKR131,000/mt ex-works Lahore.