Containerised ferrous scrap prices to Pakistan reach one month’s high as offers continue to move up amid higher freight rates. Most mills have already booked material for their immediate needs and deals could slow down in the coming days, believe traders.
A rise in domestic scrap prices, which are up $30-35/mt since mid-March and appreciation of the Pakistani rupee supported imported scrap trades. Approaching Ramadan and COVID-19-related restrictions could again dampen sentiments, fear importers.
The Davis Index for containerized shredded, Monday, settled at $460/mt cfr Port Qasim up $2.5/mt from Friday. Mills booked considerable volumes of shredded at $460-462/mt cfr Qasim. Suppliers in the UK and EU targeted $465-470/mt cfr Qasim. Also, despite increasing supplies at yards, a hike in container freight rates increased the landed cost of scrap.
The daily index for US-origin HMS 1&2 (80:20), Monday, settled at $432.5/mt cfr Port Qasim, up $5/mt from Friday. Very few export deals heard as healthy domestic demand reduced offers to the seaborne market.
Offers for mixed #1 HMS and P&S from UAE heard at $445-450/mt cfr Port Qasim depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $440/mt cfr Port Qasim, up by $4/mt. A few trades heard at $435-440/mt cfr Port Qasim. There is a shortage of materials due to active domestic demand in the UAE.
Steel prices pause rally
On Monday, Bala billets offered stable at PKR108,000-108,500/mt ex-works Lahore. Offers for G-60 billet at PKR113,500-114,000/mt ex-works Punjab.
Most large steelmakers in Punjab and Karachi announced a rebar price hike followed by high raw material prices. Yet trades remained slow resisting an uptrend. Rebar offers at PKR131,500-132,000/mt ex-works Lahore. Local rebar offers at PKR121,000-122,000/mt ex-works Punjab.
Domestic steel demand has shown signs of recovery as most infrastructure projects have received cash release from the government and are expected to turn active soon.
Domestic scrap prices stable
Prices for Art Q toke scrap equivalent to a mix of HMS and P&S, Monday, stable at PKR88,000-88,500/mt ex-yard, up PKR500/mt from Friday in Lahore. Trades for Pure Q toke scrap equivalent to shredded continued at PKR89,500-90,000/mt ex-yard Lahore.
Limited availability of imported scrap offers boosted domestic scrap trades in Pakistan. In Gadani, offers for scrapped vessels were unchanged on bullish global cues and active plate demand. Offers ranged from $470-490/ldt cnf.