Pakistan’s imported ferrous scrap prices dropped by over $10/mt from the prior week on the back of weak global cues. The fall in prices encouraged buyers to book containers amid sustained steel demand and increased domestic prices. Steel prices in the country rose by PKR2,000-2,500/mt from the prior week.
The Davis Index for US-origin containerized shredded settled at $275/mt cfr Port Qasim on Friday, down by $2/mt from Thursday and by $10/mt from the prior week. Prices dropped driven by the bearish Turkish bulk import prices and steelmakers expect prices to drop even further.
Early in the week, trades for shredded concluded at $278-282/mt cfr Qasim. Offers for US-origin shredded subsequently dropped to $274-277/mt cfr Qasim on Friday. UK suppliers offered the same grade at $280-285/mt cfr Qasim refusing to lower their prices. But buyers were not keen at those prices.
The Davis Index for HMS 1&2 (80:20) from UAE settled at $258/mt cfr Qasim, down by $2/mt from Thursday and by $10/mt from a week ago. The Davis Index for UAE-origin #1 HMS settled at $263/mt cfr Port Qasim, down by $12/mt from the prior week. UAE-origin super scrap or a mix of #1 HMS and P&S traded at $260-265/mt cfr Qasim.
Most South African suppliers are still struggling with export permit issues and there were no fresh offers in the market. The index for US-origin HMS 1&2 (80:20) was at $257/mt cfr Qasim, down by $3/mt from Thursday and by $15/mt from the prior week. Though US yards held their offers at $260-265/mt cfr Qasim for HMS 1&2 (80:20), bids declined amid softening global prices.
The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe Friday settled at $250/mt cfr Qasim, down by $10/mt. A few trades reported for at index prices with offers from European yards were at $250-255/mt cfr Port Qasim. The index for Latin American HMS 1&2 (80:20) settled at $245/mt cfr Qasim, down by $10/mt from the prior week and trades concluded at the index price.
The Davis Index for P&S settled at $276/mt cfr Port Qasim, down by $9/mt from the prior week. Trades for UK-origin P&S were at $275-280/mt cfr Qasim this week. The Davis Index for busheling was at $289/mt cfr Qasim, down $9/mt from the prior week. Trades for busheling concluded at $290/mt cfr Qasim.
Pakistan’s domestic steel prices rise as demand strengthens
With the economy on a path to recovery, major steelmakers in the country have raised their daily output. Downstream demand rebound this week and domestic steel prices rose by PKR2,000/mt from the prior week. The state bank of Pakistan lowered its main interest rate by 100 points to 7pc which is help businesses in the coming days.
The weekly Davis Index for commercial Bala billet settled at PKR92,500/mt ex-yards Punjab on Friday, inclusive of local taxes, up by PKR2000/mt from the prior week. A few trades also concluded at PKR93,000-94,000/mt ex-works.
The Davis Index for G-60 billet settled at PKR97,000/mt ex-Punjab plant, also up by PKR2,000/mt from the prior week.
The Davis Index for G-60 rebar settled at PKR113,500/mt ($678.66/mt) ex-plant Karachi, up by PKR1,500/mt from a week ago. Rebar trades concluded at PKR113,000-114,000/mt ex-plant Karachi over this week. Demand for rebar was higher in the Northern region than South Pakistan this week.
In Punjab, trades for G-60 rebar were reported at PKR114,000-115,000/mt ex-plant, up by PKR2000-2500/mt from the prior week.
Domestic ferrous scrap prices in Pakistan rose by PKR2,000/mt from the prior week due to limited supply. The weekly index for Art Pure Q equivalent to shredded settled at PKR69,500/mt ex-works. Offers for domestic mixed HMS and P&S scrap were at PKR70,500-71,000/mt delivered mill on Friday.