Imported scrap prices in Pakistan reached a five-month high. Inquiries by traders remained high but did not convert into trades as Eid al-Adha holidays have begun on Friday in the country. Economic activities are expected to slow down until Tuesday.
Prices of finished flat steel and hot-rolled coil (HRC) imported from China rose to $520-525/mt cfr Pakistan. Post Eid holidays, a surge in construction projects is expected to improve demand.
The Davis Index for US-origin containerized shredded settled at $304.71/mt cfr Port Qasim on Friday, up by $0.71/mt from Thursday and by $8.71/mt from the prior Friday. A few trades for shredded from the UK were at $305-307/mt cfr Port Qasim. Prices subsequently increased to $308-310/mt on Friday. Trades for European and US-origin shredded were reported at $298-304/mt cfr Port Qasim during the week.
The Davis Index for HMS 1&2 (80:20) from UAE settled at $296.25/mt cfr Port Qasim, up by $1.25/mt from Thursday and by $18.25/mt from a week ago. UAE-origin super scrap or a mix of #1 HMS and P&S traded at $295-305/mt cfr Port Qasim, depending on quality.
The index for US-origin HMS 1&2 (80:20) was at $285.21/mt cfr Port Qasim, up by $0.21/mt from Thursday and $9.9/mt from a week ago with trades in the range $280-287/mt cfr Port Qasim. A few US yards were offering HMS 1&2 (80:20)at $290/mt cfr.
The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe on Friday, settled at $280/mt cfr Port Qasim, up by $9/mt. A few trades were reported at the index price with offers at $280-285/mt cfr Port Qasim.
The index for Latin American HMS 1&2 (80:20) settled at $285/mt cfr Port Qasim, up by $10/mt from the prior week and trades concluded at the index price. A rise in the number of offers as well as prices was recorded from Brazilian suppliers to Pakistan. Traders offered LMS bundles at $250-255/mt cfr.
The Davis Index for P&S and busheling settled at $308/mt and $316/mt cfr Port Qasim, up by $10/mt and $5/mt, respectively, from the prior week.
Domestic steel prices in Pakistan remained mixed. Varying demand trends depending on the region, and bullishness in imported scrap governed prices. But finished steel prices have largely returned to pre-COVID-19 levels.
Pakistan currency appreciated to PKR165.25 against $1 from 168.25 a week ago. The resulting conversion gain lowered the value of imported scrap and allowed producers to offer steel at discounted rates.
The weekly Davis Index for commercial Bala billet settled at PKR92,250/mt ($553/mt) ex-works Punjab on Friday, inclusive of local taxes, down by PKR750/mt from the prior week. Trades concluded in the range of PKR92,000-92,500/mt ex-works, down by PKR500-1,000/mt amid softened demand due to Eid holidays. The Davis Index for G-60 billet settled at PKR96,750/mt ex-works Punjab, down by PKR250/mt from the prior week.
The weekly Davis Index for G-60 rebar settled at PKR112,000/mt ($677.78/mt) ex-works Karachi, down by PKR1000/mt.
Rebar trades concluded at PKR111,500-112,500/mt ex-works Karachi this week. Heavy rains in the Karachi region and a non-availability of laborers impacted the steel production in the country. In Punjab, G-60 rebar prices were unchanged in the range PKR111,000-112,000/mt ex-works from the prior week amid oversupply and rising input costs.
Domestic ferrous scrap prices in Pakistan increased in line with higher imported scrap offers. The weekly index for Art Pure Q equivalent to shredded settled at PKR71,500/mt ex-yards, up by PKR250/mt. Trades for domestic mixed (HMS and P&S) scrap were at PKR72,500-73,000/mt del Lahore mill on Friday.