Imported ferrous scrap offers to Pakistan rebounded on Friday and continued their slow upward movement on Monday. Trades at increased prices concluded, albeit in limited volumes, offering a boost to the sellers’ sentiments. Most sellers expect offers to find ground at present levels for couple of weeks before global prices signal a clear direction.
The daily Davis Index for containerized shredded on Monday reversed Friday’s drop to settle again at $525/mt cfr Qasim, up $5/mt. A few trades from weekend heardin the range of $520-$526/mt cfr Port Qasim depending on volumes and origins from the UK and Europe. On Monday, most offers were at $525-530/mt cfr Qasim.
In Turkey, the daily Davis Index for bulk imports of US-origin HMS 1&2 (80:20) dropped to $447.76/mt cfr Turkey, by $2.74/mt on Friday after a sale from Europe. On Monday, negotiations are expected to stay halted on Victory Day, holiday.
Demand for the UAE origin HMS was healthy in India but lowered in Pakistan. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled unchanged at $490/mt cfr port Qasim. Trades for UAE-origin mixed #1 HMS and P&S were reported again at $505/mt cfr Port Qasim pushing some offers to $510/mt cfr Qasim as well.
The daily index for US-origin HMS 1&2 (80:20) settled unchanged at $487.5/mt cfr Port Qasim on Monday. Containerised offers in the supplier countries firmed up while bids lagged resulting in limited trades.
In the domestic market, lower volumes of rebar sales led to a slight decline in asking prices. Demand is expected to pick up from mid-September as the monsoon recedes and new infrastructural demand emerges in the country.
The Pakistani rupee posted gain against the US dollar for the first time after hitting an 11-month low last week. On Monday, PKR appreciated to PKR165.32 against the US dollar.
For domestic Bala billet asking rates on Monday were at PKR140,000-140,500/mt ($846.7-849.6/mt) ex-works.
Domestic scrap Art Q toke scrap (equivalent to a mix of HMS and P&S) traded stable at PKR109,000/mt ex-yards while Pure Q toke scrap (equivalent to shredded) at PKR111,250/mt ex-yard Lahore, respectively, amid tight supply.
Demolition activities in the Gadani were slow. Scrapped vessel offers rebounded by $20-25/ldt to $570-590/ldt scaling above buyers’ expectations.
Pakistan’s National Tariff Commission has announced a temporary 4-month preliminary anti-dumping duty starting Aug 23, 2021, on CRC and sheet imports originating from Taiwan (6.18pc), the European Union (6.50pc), South Korea (13.24pc), and Vietnam (17.25pc).