Only a few deals for imported ferrous scrap could materialize in Pakistan this week mills since most major sellers are unwilling to meet present bid levels amid tight supply and high freight rates. Buyers preferred to gauge the domestic steel price direction before restocking.
A silent Turkish bulk market has turned buyers cautious as they are unsure of the price trends in the coming days. Some are indicating prices could weaken by $5-10/mt to below $400/mt cfr Turkey for HMS 1&2 (80:20).
The daily Davis Index for containerized shredded, Tuesday, dropped by $4.29/mt to $408.21/mt cfr Port Qasim. A few distressed sellers sold material at $405-410/mt cfr Port Qasim, although most offers were at $410-415/mt cfr Port Qasim from sellers who believe prices are set to rebound.
The daily index for US-origin HMS 1&2 (80:20) settled at $379.29/mt cfr Port Qasim, down $4.28/mt. There is a possibility of a drop in the US ferrous scrap prices by around $50/mt in February amid easing supply on improved collection rates, state market participants.
Unable to find buyers at increased prices, Dubai-based suppliers lowered their offers again by $10-15/mt in the last two days. Traders from UAE offered #1 HMS and P&S at $380-385/mt cfr Port Qasim, depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, settled at $373/mt cfr Port Qasim down $7/mt.
Offers for containerized #1 HMS were at $407-410/mt cfr Chattogram in Bangladesh and $390/mt cfr Port Qasim. Mills state prices for Dubai-based HMS 1&2 (80:20) have to drop to $365/mt cfr Qasim to be workable.
Domestic steel sales very slow, prices drop
On Tuesday, domestic Bala billet prices were at PKR95,000-96,000/mt ex-works Lahore, down PKR1500-2000/mt ($9-12/mt) from the late last week.
Domestic Art Q toke scrap equivalent to a mix of HMS and P&S was offered at PKR78,000-78,500/mt ex-works Lahore, while Pure Q Toke (shredded) traded at PKR79,500-80,000/mt ex-yards. Limited supply and rising demand pushed domestic scrap up in Pakistan amid overall positive sentiment.
Asking rates for G-60 rebar were at PKR130,000-135,000/mt ex-works, while local rebar traded at PKR110,000-112,000/mt ex-works. A few mills kept their retail prices unchanged but offered discounted rates to increase sales.
($1=PKR160.40)