An uptick in Chinese steel prices had turned Pakistani ferrous scrap importers optimistic late last week. But many believe the market direction remains uncertain and trades could continue at a slow pace.
The daily Davis Index for containerized shredded settled unchanged at $507.50/mt cfr Port Qasim with suppliers largely silent and only a few buyers active in the market. A few deals heard at $510-512/mt cfr Qasim early last week. But after a $4/mt cfr drop in Turkish import prices on Friday, mills and traders lowered their bids.
On Monday, however, the index for Turkish imports of US-origin HMS 1&2 (80:20) settled unchanged at $502.31/mt cfr from Friday. Turkish buyers continued to target purchases at prices below $500/mt cfr for HMS 1&2 (80:20) on lower domestic steel prices.
Most traders cite the lack of clear market direction due to volatile steel prices in China as a reason for weak sentiments in the past few days. Risk-averse buyers are, therefore, treading with caution before booking more material.
The daily index for UAE-origin HMS 1&2 (80:20) fell to $473/mt cfr Port Qasim, down $2/mt. With the subcontinental buyers slowing down purchases, sellers were forced to reduce offers. Offers for UAE-origin mixed #1 HMS and P&S also dropped
The index for US-origin HMS 1&2 (80:20) unchanged at $485/mt cfr Port Qasim. The US market was silent on Monday due to the memorial day holiday.