Imported scrap prices into Pakistan moved up further on Friday. Many buyers accepted offers without negotiations amid fears of prices rising further in the coming days. Bids by Pakistani importers are higher compared to their Bangladeshi and Indian counterparts. The steel production rate has also neared pre-COVID-19 levels. in Pakistan.
The Davis Index for US-origin containerized shredded settled at $296/mt cfr Qasim on Friday, up by $2.5/mtfrom Thursday and by $7/mt from the prior Friday. UK-origin shredded was sold at $295-298/mt cfr Qasim with offers on Friday rising to $300/mt cfr Qasim.
A few European yards sold shredded at $290-295/mt cfr Qasim in containers.
The Davis Index for HMS 1&2 (80:20) from UAE settled at $278/mt cfr Qasim, up by $4.24/mt from Thursday and by $9.31/mt from a week ago. UAE-origin super scrap or a mix of #1 HMS and P&S traded at $290-295/mt cfr Qasim.
The daily index for US-origin HMS 1&2 (80:20) was at $275.31/mt cfr Qasim, up by $4.24/mt from Thursday and by $9.31/mt from a week ago with trades in the range $273-278/mt cfr Qasim. A few US yards offered the grade at $280-285/mt cfr Qasim on Friday.
The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe Friday settled at $271/mt cfr Qasim, up by $6/mt. A few trades were reported for at index price with offers in the range of $270-275/mt cfr Port Qasim.
The index for Latin American HMS 1&2 (80:20) settled at $275/mt cfr Qasim, up by $5/mt from the prior week with trades at the index price. Traders booked blue steel at $280-290/mt cfr Qasim, P&S at $285-290/mt cfr Qasim, and LMS bundles at $225-230/mt cfr Qasim.
The Davis Index for P&S and Busheling settled at $298/mt and $311/mt cfr Port Qasim, up by $6/mt and $8/mt from the prior week, respectively.
Domestic steel prices mixed ahead of Eid-al-Adha
Domestic steel prices in Pakistan showed a mixed trend. In some parts of the country, firm imported scrap prices pushed finished steel prices up.
The weekly Davis Index for commercial Bala billet settled at PKR93,000/mt ($553/mt) ex-works Punjab on Friday, inclusive of local taxes, down by PKR500/mt from the prior week. Trades concluded in the range of PKR92,000-93,500/mt ex-works. The production rate in the country has picked up leading to an oversupply of steel relative to present weak demand.
The Davis Index for G-60 billet settled at PKR96,500/mt ex-works Punjab, down by PKR500/mt from the prior week.
The Davis Index for G-60 rebar settled at PKR113,000/mt ($672.44/mt) ex-works Karachi, down PKR500/mt from a week ago. Rebar trades concluded at PKR112,500-113,500/mt ex-works Karachi. Trades in the latter part of the week slowed down as mills gear up for Eid-al-Adha holidays.
In Punjab, G-60 rebar prices remained unchanged from last week at PKR111,000-112,000/mt ex-works.
Domestic ferrous scrap prices in Pakistan rose in step with higher imported scrap prices. The weekly index for Art Pure Q equivalent to shredded settled at PKR71,250/mt ex-yards, up by PKR250/mt. Trades for domestic mixed (HMS and P&S) scrap were at PKR72,00-72,500/mt delivered mill Lahore on Friday.