Imported ferrous scrap quotes from most leading yards in the supplier countries were firm on Thursday. However, a few sales were heard at prices lower than $5-10/mt than present offers. A few sellers resisted low bids and decided to hold for rebound following recovering demand in India and Bangladesh.
Domestic steel and scrap prices could rise again following currency depreciation despite slow demand recovery. The Pakistani Rupee hit an eleven-month low at Rs166.47 against the US dollar on Thursday.
The daily Davis Index for containerized shredded on Thursday rose by $1.43/mt to $525/mt cfr Qasim. Trades for containerized shredded over 2,000mt were heard at $515/mt, $518/mt, $520/mt and even $525/mt cfr Qasim, albeit in smaller quantities, thus decreasing bids and pushing down the daily index. Sellers, however, targeted prices of $525-530/mt cfr Qasim for the UK origin shredded.
In Turkey, the daily Davis Index for bulk imports of US-origin HMS 1&2 (80:20) inched up by $0.65/mt to $450.50/mt cfr on Wednesday after most sellers refused bids below $450/mt cfr. Resistance from sellers led to a slight uptick in prices which could extend as demand recovers.
Indian imported ferrous scrap buying prices were on a recovery as domestic fundamentals strengthened, as a UAE origin suppliers increased asking rates of HMS. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled up $5/mt at $493/mt cfr port Qasim. Trades for UAE-origin mixed #1 HMS and P&S were reported again at $500-505/mt cfr Port Qasim.
The daily index for US-origin HMS 1&2 (80:20) settled at $490/mt cfr Port Qasim on Thursday, up $3.75/mt. Prices declined as global ferrous scrap prices slumped as availability eased and demand for long transit materials in South Asia remained subdued.
In Pakistan’s domestic market activity strengthened as trades gradually picked up. Domestic Bala billet traded at PKR141,000-141,500/mt ($847-850/mt) ex-works Lahore, exhibiting a flat to downward trend on Thursday depending on regions.
Following a tight supply and lowered demolition rates in Gadani, prices for domestic ferrous scrap were on an uptrend in Pakistan despite different global cues. For Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded) prices rose by PKR500/mt to PKR109,000/mt and PKR111,500/mt ex-yard Lahore, respectively, reinforced by elevated steel prices.
Unsatisfactory rebar sales for sellers led to a slight decline in asking rates. Rebar traded flat at PKR170,000/mt ex works Punjab depending on brand. While local commercial rebar traded at PKR159,000/mt ex works.