Despite ongoing Eid holidays and bullish international bulk ferrous markets, there was moderate demand for ferrous scrap in Pakistan. Many buyers looked to book material before offers rise further. A strong steel market also aided prices.
The country is observing national holidays till May 15 and the pace of trading could pick up after May 17. Availability of material for containerized trades has dipped as most yards looked to cater to the bulk market.
Amid increased inquiries and jump in Turkish bulk import offers, the daily Davis Index for containerized shredded, Wednesday, settled at $511.43/mt cfr Port Qasim, up by $12.86/mt from Tuesday. Deals were in the range of $505-512/mt cfr Qasim for material from the EU/UK. Offers on Wednesday were above $515-520/mt cfr Qasim, but buyers resisted these levels.
In Turkey, demand for ferrous scrap bulk turned active amid bullish steel prices. A rise in the domestic rebar prices above $750-760/mt ex-works, supported mills to book more ferrous scrap. Most anticipate there is room for bulk offers to rise as the uptrend in the rebar market is anticipated to stay for a month. The daily index for bulk US-origin HMS 1&2 (80:20) settled at $502.5/mt cfr Turkey, up by $1.87/mt on Tuesday despite offers of $510-515/mt cfr Turkey.
The daily index for US-origin HMS 1&2 (80:20), Wednesday, rose $8.75/mt to $487.5/mt cfr Port Qasim. US suppliers have turned optimistic about East Asian demand and diverted their attention from South Asia where demand and prices are lagging.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $484/mt cfr Port Qasim, up by $9/mt. Traders offered UAE-origin mixed #1 HMS and P&S at $490-495/mt cfr Qasim. UAE sellers were active despite holidays as prices continued to trend up further. More steelmakers could be active in the market next week to refill inventories. Although sales are slow, the scrap to steel spread has widened.
Sales of steel products, billet, and rebar, remain halted. Rising HRC offers in the international market are supporting market sentiment despite weak sales. HRC offered are at $1,030-1,040/mt fob China exporters, up by $30-40/mt further this week for Pakistani buyers.