Pakistani ferrous scrap importers stayed away from the firm asking prices on Thursday. Supply has started to ease which made a few traders reduce their offer prices. But others anticipate prices could go up and kept their offer prices unchanged. On Thursday, domestic steel prices dropped on weak demand at high prices.
According to a few participants, the changes in fixed import tariffs could stay. But the move failed to push steel prices as expected.
Re-rollers, however, were upbeat as they could to able to sell commercial rebar competitively when large makers have failed to attract buyers after raising offers.
Amid limited demand, the Davis Index for containerized shredded, Thursday, settled at $467.07/mt cfr Port Qasim, down by $2.94/mt from Wednesday. Offers by the UK and European suppliers were at $465-470/mt cfr Port Qasim. But most buyers resisted prices over $460-465/mt cfr Port Qasim.
In Turkey, the daily index for bulk HMS 1&2 (80:20) jumped by $7/mt to reach $465/mt cfr on high rebar prices. Buyers in the Indian subcontinent were largely away from trades on high offers. Turkish mills could be back in the market and raise purchase prices by $5-10/mt than present levels.
The index for US-origin HMS 1&2 (80:20) settled at $433.75/mt cfr Port Qasim, down by $1.25/mt from a day ago. The optimism around the COVID-19 vaccination drive kept sentiment boosted. In March, domestic settlements in the US could conclude at prices higher by $40-50/gt higher from the last month. Most yards kept offers firm and focused on domestic sales.
Trades for #1 HMS and P&S from UAE were reported at $440-445/mt cfr Port Qasim, depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $433/mt cfr Port Qasim, down $2/mt from Wednesday.
Domestic billet down while rebar offers rise
On Thursday, Bala billet traded in the domestic market at PKR105,500-106,000/mt ex-works, down PKR2,000/mt. After Amreli Steel announced a price hike, rebar prices were at PKR137,500-138,500/mt ex-works Karachi. Rebar prices could move up further. Prices were at PKR130,000-132,000/mt ex-works Punjab and Lahore. Most mills are waiting for rebar prices to reach PKR140,000/mt ex-works before they restock scrap.
Domestic scrap inch down
Trades for Pure Q toke scrap equivalent to a mix of HMS and P&S, Thursday, were at PKR85,500-86,600/mt ex-yard Lahore. Trades for Art Pure Q toke scrap equivalent to shredded were at PKR87,000-87,300/mt ex-yard Lahore, down PKR500-700/mt from a day ago.
The supply of shipbreaking melting sheets and re-rolling scrap will remain high. Rolling mills could opt for shipbreaking scrap. Rebar made from re-rolling scrap was offered at lower prices compared to large steelmakers asking rates.