Amid limited scrap inventories, Pakistani mills actively booked imported ferrous scrap in containers placing the most attractive bids in the Indian subcontinent.
Fears of worsening supply, elevated freights and non-availability of offers, encouraged trades. Mills also resumed trades for HMS paying $5-10/mt higher than late last week. On Monday, heavy rains in Karachi impacted transportation, production and domestic sales.
The daily Davis Index for containerized shredded, Monday, was at $546.25/mt cfr Port Qasim, up by $1.25/mt. Deals from the UK/EU origin yards heard at $545-548/mt cfr Qasim. Most offers, Monday, were at $550/mt cfr Qasim despite a few mills expecting prices to show a marginal drop following softening in Turkish bulk scrap purchases.
Trades for UAE-origin picked up in Pakistan and Bangladesh as Indian buyers stepped out of the competition. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $500/mt cfr Port Qasim, up by $4/mt from a day ago. UAE-origin mixed #1 HMS and P&S heard at $510/mt cfr Port Qasim, with a few sellers targeting as high as $515/mt cfr Qasim.
Pakistani mills paid at least $30-40/mt higher than the equivalent Indian prices amid a supply crunch in the domestic market. The index for US-origin HMS 1&2 (80:20), Monday, settled at $507.5/mt cfr Port Qasim, up by $3.25/mt from Friday.
Most large producers in Karachi and Punjab could hike rebar prices by PKR5,000-5,500/mt ($31-33/mt) to pass on the recent increase in raw material prices. Prices have jumped up despite slow sales.
Rebar traded at PKR155,750/mt ex-works Karachi and PKR154,750/mt ex-works Punjab, on improving demand ahead of Eid holidays. As the monsoon season has started, construction activities could slow in the coming days.
Domestic Bala billet prices fell by PKR1,500-2,000/mt after reaching PKR130,000/mt ($815/mt) ex-works on Friday. On Monday, Bala billet was at PKR128,000/mt ex-works.
Following firm imported scrap offers and tight domestic supply, trades for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded), Monday, reported at around PKR102,000-102,300/mt and PKR103,700-104,000/mt ex-yard Lahore, respectively, up by PKR300-500/mt from Friday.