Pakistani buyers showed little interest in booking ferrous scrap amid the Ramadan lull and weak steel demand. Limited operating hours, limited availability of workforce, and strict social distancing restrictions also impacted bookings.
A few mills, hopeful of recovery post-Eid holidays, were active in the market to book more ferrous scrap. Offers were scarce as yards expect demand to recover later. Mills in Pakistan and India are working with limited inventories.
The Davis Index for containerized shredded, Tuesday, settled at $460/mt cfr Port Qasim, down $1.25/mt from Monday. Some deals for EU/UK origin shredded were at $458/mt and $460/mt cfr port Qasim. On Tuesday, bids from mills dropped to $455/mt cfr Qasim. Pakistani mills hope for prices to fall following a drop in Turkish bulk prices.
In Turkey, several small bulk deals concluded last week. The daily index dropped to $420.65/mt cfr Turkey, down $3.1/mt for HMS 1&2 (80:20) as Ramadan has slowed economic activities. The depreciation of the Turkish Lira against the US dollar also pressured prices. Mills in South Asia are, thus, expecting a softening in asking prices.
The daily Index for US-origin HMS 1&2 (80:20), Tuesday, dropped by $1.25/mt to $437.5/mt cfr Port Qasim from Monday. Offers were at $440-445/mt cfr Qasim, with most mills showing no interest to book HMS above $435/mt cfr Qasim from countries where the delivery period is long.
UAE-based sellers have decided to stay away from offering material at present bid levels. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $444/mt cfr Port Qasim, down by $2/mt. Trades for mixed #1 HMS and P&S from UAE were unchanged at $455-460/mt cfr Port Qasim, depending on quality, down $5/mt.
Domestic steel prices stagnant
On Tuesday, Bala billet offers were heard at PKR109,000-109,500/mt ex-works Lahore, unchanged from Monday. Offers for G-60 billet were also unchanged at PKR113,500-114,000/mt ex-works Punjab. End-users believe a few stockists may start offering discounts following the limited movement of finished steel. Restricted cash flow also impacted trades.
Long steel producers in Punjab and Karachi kept offers firm, while many small-scale steelmakers have announced annual maintenance amid weak domestic demand. Local rebar offers remained rangebound at PKR120,000-121,000/mt ex-works Punjab while CC grade traded at PKR131,000/mt ex-works.
Domestic scrap unchanged
Art Q toke scrap equivalent to a mix of HMS and P&S Tuesday was offered at PKR88,500-89,000/mt ex-yard Lahore, flat from Monday. Pure Q toke scrap equivalent to shredded, traded at PKR90,300-90,500/mt ex-yard Lahore. In Gadani, demolition work slowed with the start of Ramadan as most workers have returned to their hometowns.