Imported ferrous scrap prices firmed up in Pakistan as demand remained stable. Global cues from Turkey and China were a tad negative, which held back a few South Asian buyers on Tuesday.
Port congestions at several Chinese ports following the partial shut down of operations of Ningbo port are posing further logistic challenges and worsening container availability, globally. Freight charges and transit periods are expected to rise due to these delays.
The daily Davis Index for containerized shredded, Tuesday, settled at $537.5/mt cfr Qasim, up $4.5/mt from Friday. Trades for shredded continued at above $535/mt cfr Qasim on active restocking by mills. A few deals for loaded shredded arriving in September heard at $540/mt cfr Qasim.
In the bulk market, Turkish mills pressured sellers by their silence. In recent deals, prices declined marginally. As rebar export orders have returned, mills could actively resume scrap restocking, hope market participants.
Demand for the UAE-origin HMS was stable in India and Pakistan pushing offers up slightly. The daily Davis Index for UAE-origin HMS 1&2 (80:20) Tuesday settled at $494/mt cfr port Qasim, up $2/mt. Trades for UAE-origin mixed #1 HMS and P&S continued at $505-510/mt cfr Port Qasim.
The daily index for US-origin HMS 1&2 (80:20), Tuesday, settled at $491.25/mt cfr Port Qasim, up by $3.25/mt from Friday. Containerized freights rates remained elevated while prices on the east coast showed an uptick for containerized bookings.
Easing supply pushed down finished steel prices in the domestic market. Asking rates, however, stayed high on increased input costs. Rebar G-60 offers were at PKR166,000-167,000/mt ex-works Karachi while trades reported at around PKR165,000/mt ex-works Punjab.
Local rebar continued to trade stable at around PKR155,000/mt following slow demand for billet and limited construction projects operational amid Muharram lull.
For domestic Bala billet prices rebounded by PKR2,000/mt ($5/mt) to PKR138,500-139,000/mt ex-works Lahore on Tuesday.
Offers for Art Q toke scrap (equivalent to a mix of HMS and P&S) rose by PKR500/mt to PKR107,000/mt ex-yard Lahore and Pure Q toke scrap (equivalent to shredded) rose by PKR500/mt to PKR109,500/mt ex-yard Lahore following tight supply.
($1=PKR164.46)