Pakistani mills booked some quantities of imported ferrous scrap at lowered bids early this week, however, most traders and sellers have now decided to not offer materials and wait for a price recovery. Domestic steel and scrap prices remained firm on tight supply and expectations of a strong demand recovery.
Chinese steel prices have been on the recovery since the last couple of days which improved sentiments in most Asian markets. Mills could further restock ferrous scrap inventories after billet and rebar booking in Southeast Asia resume, believed experts.
The daily Davis Index for containerized shredded on Wednesday inched down by $2.57/mt to $526.43/mt cfr Qasim. Trades for containerized shredded were reported at $525/mt and $526/mt cfr Qasim, albeit in smaller quantities than usual. Sellers were uninterested in bids below $520/mt cfr Qasim and targeted price levels around $528-530/mt cfr Qasim for the UK origin shredded.
Turkish mills stayed away from bulk cargoes and preferred domestic scrap to imported after domestic scrap prices softened. On Wednesday, a deal was heard concluding at an average of $450/mt cfr Turkey offering slight downward pressure.
Lowered buying interest for HMS weighed on the UAE-origin ferrous scrap offers. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled unchanged at $488/mt cfr port Qasim. Trades for UAE-origin mixed #1 HMS and P&S reported at $503-505/mt cfr Port Qasim.
Suppliers in UAE expect prices to recover following an improvement in demand in the coming days.
The daily index for US-origin HMS 1&2 (80:20) settled at $486.25/mt cfr Port Qasim on Wednesday, down $1.25/mt. Falling global ferrous scrap prices on easing availability amid subdued demand for long transit materials in South Asia led to a decline in prices.
In Pakistan’s domestic market, activity strengthened as trades gradually picked up. Domestic Bala billet prices were firm at PKR141,500-142,000/mt ex-works, after rising by PKR1,500-2,000/mt from late last week. Pakistan currency Rupee hit a nine month low at 165.65 against US Dollar on Wednesday.
Following a tight supply and lowered demolition rates in Gadani prices for domestic ferrous scrap were on an uptrend in Pakistan despite soft global cues. For Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded) prices were flat at PKR108,500/mt and PKR111,000/mt ex-yard Lahore, respectively, reinforced by elevated steel prices.
Rebar traded flat at PKR171,500-173,000/mt ex works Karachi depending on brand.