Deals in Pakistan for ferrous scrap were limited with prices reaching a three-week high. Sellers either offered limited tonnages or raised asking prices by $10/mt from a day ago in anticipation of a bullish market once China returns to the market next week.
Domestic steel prices have started gaining from Monday and increased by PKR1,000-1,500/mtfrom Tuesday. In the last three days, domestic scrap prices rose by PKR2,000-2,500/mt ex-yards, while billets were up by PKR2,500-3,500/mt ($16-25/mt) ex-works. But rebar prices are still under pressure amid slow demand.
The daily Davis Index for containerized shredded, Wednesday, rose by $1.06/mt to $444.81/mt cfr Port Qasim. Around 3,000-4,000mt shredded from the UK/EU sold at $440-445/mt cfr Port Qasim. Most sellers’ offers were above $450-455/mt cfr Port Qasim.
In Turkey, rebar export offers maintained an uptrend aided by rising demand. Offers were in the range of $615-620/mt fob, widening the spread between scrap and rebar to $200/mt from the usual of $160-170/mt. Mills could start a new round of bulk bookings at $415-420/mt cfr Turkey for HMS 1&2 (80:20).
The daily index for US-origin HMS 1&2 (80:20) settled at $408.07/mt cfr Port Qasim, up by $4.32/mt. Suppliers started offering material in the export market with subcontinental buyers raising bids. Until last week, most were staying away from overseas markets amid firm domestic prices. A few yards offered containerized HMS 1&2 (80:20) at $410-415/mt cfr Port Qasim.
On Wednesday, offers for #1 HMS and P&S from UAE were at $415-420/mt cfr Port Qasim, depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, rose by $3/mt to $406/mt cfr Port Qasim. Buyers in Pakistan have shown interest in Dubai HMS scrap after a long period as shredded offers have gone sharply up turning non-viable till rebar prices rise again.
Domestic scrap prices rise on tight supply
In Lahore, Bala billet prices were at PKR101,500-102,000/mt ($634-638/mt) ex-works, up by PKR1,000-1,500/mt from a day prior. Demand, however, is still short of mills’ expectations.
Prices for domestic scrap Pure Q Toke equivalent to shredded were at PKR81,500-82,000/mt ex-yards Lahore, up PKR1,000/mt from Tuesday. Rebar offers were at PKR125,000-127,000/mt ex-works Karachi, excluding discounts. A few large-scale mills offered material at prices above PKR130,000/mt ex-works. Rebar prices have declined by PKR10,000-15,000/mt from their peak resulting in lowered cost of construction and pick up in infrastructure projects again.