Pakistani ferrous scrap importers were in the market to book material despite high offers. The recently announced federal budget for FY2021-22 spells a positive outlook for steel consumption and has increased the GDP target to 4.8pc.
The daily Davis Index for containerized shredded, Monday, rose by $4.46/mt to $532.5/mt cfr Port Qasim from Friday. Containerized trades for the UK/EU shredded were reported in the range of $530-535/mt cfr Qasim. Driven by strengthening global cues, expectations from sellers on Monday were at $540/mt cfr Port Qasim. Prices are nearing the record high of $550/mt cfr Qasim in 2008.
In Turkey, a deal was reported at a lower price and the Davis Index for imports of US-origin HMS 1&2 (80:20) slipped by $3.61/mt from the preceding day to $506.97/mt cfr Turkey on Friday.Domestic rebar prices, however, continued to rise to 730/mt ex-works on Monday. In the export market, rebar offers could cross $750/mt fob Turkey on bullish cues from Asian markets. Chinese steel prices have shown recovery on rising iron ore prices which $220/mt cfr north China for 62pc Fe content.
Offers for UAE-origin HMS scrap continued to strengthen on the back of firm demand. The Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $502/mt cfr Port Qasim, up by $4/mt from Friday. Trades for UAE-origin mixed #1 HMS and P&S were reported at $510-515/mt cfr Port Qasim amid tight supply.
The daily index for US-origin HMS 1&2 (80:20), Monday, settled at $502.64/mt cfr Port Qasim, up by $1.14/mt. International container freights rates remained elevated while COVID-19-related restrictions at few Chinese ports resulted in an imbalance between supply-demand of containers.
Finished steel prices were also firm as mills in the country eyed further hikes on a continuous rise in ferrous scrap prices. In the domestic market, domestic Bala billet traded at PKR117,200-117,500/mt ex-works.
Offers for local rebar were at PKR131,000/mt ex-works. Medium-scale steelmakers sold rebar traded at PKR145,500-146,000/mt ex-works Karachi and PKR144,000-144,500/mt ex-works Punjab.
Domestic ferrous scrap supply remained tight. Offers for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded) were at PKR95,000/mt and PKR96,500/mt ex-yard Lahore, respectively, both up by PKR500/mt from Friday.
($1=PKR155.87)