Pakistani ferrous scrap importers have resumed activities in tandem with rising production and on indications of strengthening global scrap markets. Supply of imported scrap to Pakistan remained very tight while mills adopted a wait-and-watch approach to gain clarity on global cues. Limited end-user demand also held back trades this week.
In the bulk market, offers for US-origin HMS 1&2 (80:20) were at $325-330/mt cfr Qasim, but buying interest was limited on Friday.
The Davis Index for containerized shredded settled at $320/mt cfr Port Qasim on Friday, up $2/mt from Thursday and up $6/mt from the prior Friday. Trades for the UK-origin shredded reported at $318-320/mt cfr Qasim.
Pakistani mills resisted high offers due to a $10/mt jump in Turkish bulk imported scrap prices this week. Offers on Friday were at $323-328/mt cfr Qasim but buyers showed no interest at these levels.
The Davis Index for HMS 1&2 (80:20) from UAE settled at $306/mt cfr Port Qasim, up by $1.86/mt from Thursday and up by around $7/mt from a week ago. UAE-origin super scrap or a mix of #1 HMS and P&S traded at $310/mt cfr Port Qasim, depending on quality.
The index for US-origin HMS 1&2 (80:20) was at $306/mt cfr Port Qasim, up by $1/mt from Thursday and $8/mt from a week ago. Trades were reported at around $300-305/mt cfr Port Qasim early this week. While a few US yards offered HMS 1&2 (80:20) at $310/mt cfr Port Qasim on Friday.
The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe Friday settled at $295/mt cfr Port Qasim, up by $3.5/mt. A few trades were reported at the index price. Offers were at $300/mt cfr Port Qasim.
The index for Latin American HMS 1&2 (80:20) settled at $298.25/mt cfr Port Qasim, up by $2.83/mt from the prior week. Brazilian supplies were absent from the market amid high native demand.
The Davis Index for P&S and busheling settled at $320/mt and $332/mt cfr Port Qasim, both up by $4/mt, from the prior week. Trades for both grades were customized as per mills’ requirements. Brazilian and UK-origin busheling traded at around index prices, while offers were at $335-340/mt cfr Qasim on Friday.
Domestic steel prices remained flat to up in Pakistan amid higher imported ferrous scrap prices. The weekly Davis Index for commercial Bala billet, Friday settled at PKR91,000/mt ($549/mt) ex-works Punjab, inclusive of local taxes, unchanged from the prior week. Trades concluded at PKR91,000/mt ex-works. Buyers reduced purchase volumes due to a cash crunch. The Davis Index for G-60 billet settled at PKR96,500-97,000/mt ex-works Punjab, with the index rising PKR250/mt from the prior week.
The weekly Davis Index for G-60 rebar settled at PKR111,750/mt ($675.58/mt) ex-works Karachi, up by PKR250/mt. Heavy rains impacted trades in the country. Rebar trades concluded at PKR111,500-112,000/mt ex-works Karachi this week. In Punjab, G-60 rebar prices rise PKR375/mt to PKR112,125/mt ex-works from the prior week amid improving demand.
High imported scrap prices pushed domestic Pure Q toke scrap (equivalent to shredded) to PKR70,000-70,300/mt ex-works Lahore on Thursday, up by PKR300/mt from early this week.
Domestic ferrous scrap prices in Pakistan increased in line with higher imported offers. Trades for domestic mixed (HMS and P&S) scrap were at PKR70,500-70,700/mt del Lahore mill this week, on improved demand in the country.