Imported scrap prices in Pakistan declined this week with a drop in buying interest. Most steelmakers were reluctant to book more scrap in containers until they gained clarity on global prices. Traders faced severe cash crunch this week as awaited payments from the domestic markets.
Economic activities have gained momentum in Pakistan helped by the government stimulus to reduce the impact of COVID-19. The resumption of housing construction is favouring steel dmeand in the country. Major mills in Pakistan have returned to 100pc capacity utilization levels.
The Davis Index for US-origin containerized shredded settled Friday at $308/mt cfr Port Qasim up by $1/mt from Thursday, but down by $9/mt from the prior Friday. The UK-origin shredded traded at $308-312/mt cfr Qasim, while EU-origin shredded sold at $305-307/mt cfr Qasim. On Friday offers were heard at $310-315/mt cfr Qasim but buyers showed little interest.
The Davis Index for HMS 1&2 (80:20) from UAE settled at $298/mt cfr Port Qasim, down by $0.57/mt from Thursday and by around $7/mt from a week ago. UAE-origin super scrap or a mix of #1 HMS and P&S traded at $300-305/mt cfr Port Qasim, depending on quality.
The index for US-origin HMS 1&2 (80:20) settled at $293.5/mt cfr Port Qasim, up by $1.50/mt from Thursday and $7/mt from a week ago with trades at $290-295/mt cfr Port Qasim. A few US yards offered HMS 1&2 (80:20) at $295-298/mt cfr Port Qasim on Friday.
The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe Friday settled at $290/mt cfr Port Qasim, down by $4/mt. A few trades were reported at the index price. Offers were at $290-295/mt cfr Port Qasim.
The index for Latin American HMS 1&2 (80:20) settled at $293/mt cfr Port Qasim, down by $5/mt from the prior week and trades concluded at the index price.
The Davis Index for P&S and busheling settled at $316/mt and $326/mt cfr Port Qasim, both up by $6/mt, from the prior week. Trades for both grades were customised per mills’ requirements. Brazilian and UK-origin busheling traded at around index prices, while offers were at $325-330/mt cfr Qasim on Friday.
Domestic steel
Domestic steel prices dropped marginally in Pakistan amid higher imported ferrous scrap prices. The weekly Davis Index for commercial Bala billet Friday settled at PKR92,000/mt ($547/mt) ex-works Punjab, inclusive of local taxes, down by PKR250/mt from the prior week. Trades concluded at PKR92,000-92,500/mt ex-works. Buyers reduced purchase volumes due to a cash crunch. The Davis Index for G-60 billet settled at PKR97,000/mt ex-works Punjab, unchanged from the prior week.
The weekly Davis Index for G-60 rebar settled at PKR112,500/mt ($669.34/mt) ex-works Karachi, down by PKR500/mt. Rebar trades concluded at PKR112,500/mt ex-works Karachi this week. In Punjab, G-60 rebar prices were unchanged at PKR112,000-112,500/mt ex-works from the prior week amid rising input costs.
($1=PKR168.0)