Pakistani ferrous scrap importers have started to book material as offers have started to soften. Mills were resisting previous offer levels. Prices for shredded by around $10/mt from the prior week while the UAE-origin HMS 1&2 (80:20) registered a decline of over $15/mt.
Iron ore prices with 62pc ferrous content rebounded over $6/mt each in the last two successive days reaching $218/mt cfr north China on Wednesday. In the Chinese steel market, strengthening futures and tight supply could keep steel prices flat to up.
The daily Davis Index for containerized shredded, Wednesday, inched down by $2.25/mt to $529/mt cfr Port Qasim. A few small-volume deals for shredded were reported at $528-530/mt cfr Qasim. Sellers were not keen on the bids levels for US-origin material at $525/mt cfr Qasim. Most participants believe that there could be a limited decline in prices as the US domestic market is bullish.
Asking prices for containerized UK/EU-origin shredded were firm at $530-532/mt cfr Qasim on Wednesday. Turkish mills were largely away from bulk scrap purchases and the daily Davis Index for imports of US-origin HMS 1&2 (80:20) was at $497.5/mt cfr Turkey; down by $1.25/mt on Tuesday.
A decline in bids by Indian mills and weak steel prices pressured UAE suppliers to reduce offers. The Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, settled at $482/mt cfr Port Qasim, down $11/mt. Deals for UAE-origin mixed #1 HMS and P&S were at $490-495/mt cfr Port Qasim, while some bids by buyers were also lower by $5/mt than the trade price.
The daily index for US-origin HMS 1&2 (80:20), Wednesday, settled at $501.25/mt cfr Port Qasim, down by $6.25/mt. Sellers kept offers elevated, citing firm collection costs. But bids dropped following price trends for scrap in other supplier countries. For July settlements, US suppliers could target a $20-30/gt raise for prime grades. The gap between HMS and prime grades could widen further.
In the Pakistan domestic market, steel prices stabilized after an initial drop. Trading too resumed as prices dropped to match buyers’ interests. Trades for Bala billet were at PKR116,000-116,300/mt ex-works Punjab. For rebar, asking rates were unchanged at PKR145,500/mt ex-works Karachi and PKR144,000/mt ex-works Punjab.
Ahead of the month and year close, mills could turn their focus on clearing utility bills. For Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded), on Wednesday, offers were firm at PKR94,000-94,300/mt and PKR95,000-95,300/mt ex-yard Lahore, respectively.