Sentiment for ferrous scrap imports in the Pakistani market strengthened over this week, albeit, trades remained slower seeking clarity on price direction from the global markets. Finished steel inventories continue to decline at mills and they are enquiring to refill scrap inventories. Appreciation of the Pakistani currency to PKR162.5 on Friday against the US dollar, from PKR166.5 a month ago could encourage trades in the next few days.

 

The Davis Index for containerized shredded Friday settled at $312.14/mt cfr Port Qasim, gaining $7/mt from the prior week. Trades for containerized shredded of European origin were reported at $308-310/mt cfr Port Qasim. Offers from UK yards were at $312-315/mt cfr Port Qasim, with a few deals at $310-312/mt cfr Port Qasim.  

 

Amid renewed buying interest in India, HMS scrap prices in Pakistan jumped this week. Dubai being the preferred supplier offers registered an uptick in the early half of the week. On Friday, the Davis Index for UAE-origin HMS 1&2 (80:20) settled at $296/mt cfr Port Qasim, up $10/mt from a week ago. Buyers were interested in HMS 1&2 (80:20) at $290/mt cfr Port Qasim while offers were only above $300/mt cfr Qasim. Trades for UAE-origin mixed #1 HMS and P&S sarya scrap were reported at $305-310/mt cfr Port Qasim, up $5/mt from the prior week. 

 

Offers of South African scrap jumped by $5-10/mt as the African government intends to lower exports. However, the supply was very scarce.  

 

The gap between HMS and shredded narrowed encouraging shredded trades this week. The index for US-origin HMS 1&2 (80:20) settled at $295.14/mt cfr Port Qasim, up by $3/mt from Thursday. A few yards could run short of supply towards December on seasonal issues and buyers resumed restocking materials with more interest for shredded than HMS due to extra taxes on the latter.  

 

The weekly Davis Indexes for P&S and busheling settled at $316/mt and $326/mt cfr Port Qasim, up by $3/mt and down $7/mt, respectively. Trades for Busheling scrap reported at lower prices as suppliers were not getting interested from any other regions early this week. However, towards week close Indonesia has resumed buying aggressively giving a lift to the prices.  

 

Domestic steel  

Domestic steel prices in Pakistan remained flat from a week ago as demand continued to lag. Billet prices dropped on weak demand however, rebar offers remained flat amid expectations of recovery.  

The weekly Davis Index for commercial Bala billet, Thursday, settled at PKR90,500/mt ex-works Punjab inclusive of local taxes, down PKR550/mt from the prior week. Trades concluded at PKR90,000-90,500/mt ex-works down from the last week.  

The Davis Index for G-60 billet settled at PKR96,500/mt ex-works Punjab, up by PKR250/mt. Rolling scrap prices rose following limited supply giving a lift to premium billet prices.  

The weekly Davis Index for G-60 rebar rose to PKR110,500/mt ex-works Karachi, up around PKR800/mt from last week. Mills canceled discounts on expectations of improving demand. In Punjab, G-60 rebar prices were PKR109,000-109,500/mt ex-works, unchanged from last week. Local rebar traded at PKR103,000-104,000/mt ex-works.

 

Domestic scrap

Improving imported scrap market prices increased trades of domestic scrap in Pakistan. Index for Pure Q toke scrap equivalent to shredded traded at PKR70,500/mt ex-works Lahore, Friday, flat from late last week. The weekly index for Pure Q Toke (shredded) dropped by PKR50/mt to PKR71,250/mt ex-works in line with easing supply.  

 

($1=PKR162.46)

 

 

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