Imported scrap prices in Pakistan dropped by $15-20/mt this week on global cues. A few mills in Karachi continued booking scrap despite a decline in Pakistan’s currency, as domestic steel prices rose by PKR1,500-2,000/mt from the prior week. Pakistan Rupee (PKR) depreciated to PKR160.1 against US$1 on March 14 from PKR154.38 on March 9.
Builders and contractors are looking to complete construction projects before the Ramadan month begins in April last week. Till then, market participants are likely to continue restocking ferrous scrap inventory.
The weekly Davis Index for containerized shredded dropped by $20/mt to settle at $281/mt cfr Port Qasim on Friday. Early this week, trades for containerised shredded concluded at $285-290/mt cfr Qasim which subsequently fell to $280/mt cfr Port Qasim on Friday. Prices declined pressured by a fall Turkish scrap import prices. The Davis Index for US-origin HMS 1&2 (80:20) settled at $245/mt cfr Turkey on Friday, down by $25/mt from the prior week.
The Davis Index for Dubai-origin #1 HMS settled at $280/mt cfr Port Qasim, down by $20/mt from the prior week. Offers for a mix of #1 HMS and P&S were at $285-290/mt cfr Qasim, with no buyers interested at those levels. The Davis Index for P&S settled at $285/mt cfr Port Qasim, down by $20/mt from the prior week.
The index for busheling settled at $293/mt cfr Port Qasim, down by $15/mt from the prior week. Busheling traded at $290-295/mt cfr Qasim. Containerised HMS 1&2 (80:20) from the UK and US traded at $265-270/mt cfr Port Qasim, down by $15-20/mt from the prior week. South Africa #1 HMS was offered in the range of $280-285/mt cfr Port Qasim, with a few trades reported.
Pakistan’s domestic steel prices up
The weekly Davis Index for commercial Bala billets increased by PKR2,000/mt to PKR87,500/mt ex-yards Punjab inclusive of local taxes. The Davis Index for G-60 billet rose by PKR1,250/mt to PKR93,250/mt cfr Qasim from the prior week. Mills raised listed rates for G-60 rebar to PKR108,000-109,000/mt ex-plant Karachi and the Davis Index for G-60 rebar settled at PKR108,500/mt ex-plant Karachi, up PKR1,000/mt from a week ago. In Punjab, G-60 rebar traded at PKR107,000-108,000/mt ex-plant Punjab with its index settling at PKR107,500/mt ex-plant.
Domestic shortage of ferrous scrap continues
Prices for Pakistan’s domestic high-grade scrap equivalent to shredded, rose by PKR1,000-1,500/mt to PKR67,500-68,000/mt ex Punjab yard due to its limited availability. The government has banned vessels from anchoring at its Gaddani ship breaking yard for the next four weeks which caused a shortage of melting and rolling scrap with re-rollers and manufacturers.