Imported scrap prices stayed bullish in Pakistan but trades slowed down this week compared to aggressive buying seen in the prior weeks. Economic activities have gained momentum amid government stimulus to reduce the impact of COVID-19 and the resumption of housing construction. Major mills in Pakistan have returned to 100pc capacity utilization levels. 

 

Pakistani ferrous scrap importers purchased limited volume as they await clarity in price direction amid limited cash flow. Shipbreaker in Gadani paid $30/ldt higher than other subcontinental bidders to secure more tonnage. Shipbreaking yards that have returned to business after nearly two years are benefiting from government incentives for steelmakers and a shortage of rolling scrap, globally.   

 

The Davis Index for US-origin containerized shredded settled at $317/mt cfr Port Qasim on Friday, up by $1.87/mt from Thursday and by $3.33/mt from the prior Friday. Around 5,000mt of shredded from Europe-origin traded at $310-313/mt cfr Qasim, while UK-origin shredded sold at $314-317/mt cfr Qasim. Offers on Friday were heard at $320/mt cfr Qasim but buyers showed little interest. 

 

The Davis Index for HMS 1&2 (80:20) from UAE settled at $305.83 /mt cfr Port Qasim, up by $1.54/mt from Thursday and by $6.83/mt from a week ago. UAE-origin super scrap or a mix of #1 HMS and P&S traded at $308-310/mt cfr Port Qasim, depending on quality. 

The index for US-origin HMS 1&2 (80:20) was at $300.83/mt cfr Port Qasim, up by $1.90/mt from Thursday and $5.83/mt from a week ago with trades at around $300/mt cfr Port Qasim. A few US yards offered HMS 1&2 (80:20) at $303-305/mt cfr Port Qasim on Friday.

  

The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe Friday settled at $294/mt cfr Port Qasim, up by $8/mt. A few trades were reported at the index price. Offers were at $290-295/mt cfr Port Qasim. 

The index for Latin American HMS 1&2 (80:20) settled at $298/mt cfr Port Qasim, up by $8/mt from the prior week and trades concluded at the index price. 

 

Brazilian suppliers sold aggressively to Pakistan this week. Traders offered LMS bundles at $270-275/mt cfr port Qasim, up $10/mt from the prior week. The Davis Index for P&S and busheling settled at $316/mt and $326/mt cfr Port Qasim, both up by $6/mt, from the prior week. Trades for both grades were customised per mills’ requirements. Brazilian and UK-origin busheling traded at around index prices, while offers were at $325-330/mt cfr Qasim on Friday.

 

Domestic steel 

Domestic steel prices rose amid higher imported ferrous scrap prices. The weekly Davis Index for commercial Bala billet Friday settled at PKR92,250/mt ($550/mt) ex-works Punjab, inclusive of local taxes, down by PKR250/mt from the prior week. Trades concluded at PKR92,000-92,500/mt ex-works. Buyers reduced purchase volumes due to a cash crunch. The Davis Index for G-60 billet settled at PKR97,000/mt ex-works Punjab, unchanged from the prior week. 

The weekly Davis Index for G-60 rebar settled at PKR113,000/mt ($672.29/mt) ex-works Karachi, up by PKR500/mt. Rebar trades concluded at PKR113,000/mt ex-works Karachi this week. In Punjab, G-60 rebar prices were unchanged at PKR112,000-113,000/mt ex-works from the prior week amid rising input costs.

 

Domestic scrap

Domestic ferrous scrap prices in Pakistan increased slightly in line with higher imported scrap offers and depreciation of the Pakistani Rupee. The weekly index for Art Pure Q equivalent to shredded settled at PKR72,250/mt ex-works, up by PKR250/mt. Trades for domestic mixed (HMS and P&S) scrap were at PKR73,000-73,500/mt del Lahore mill over this week, on improved demand in the country. 

 

($1=PKR168.84)

 

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