Mills in booked bulk cargoes this week, as a shortage of containers increased landed cost of containerised scrap. Finished steel demand, which is stagnant at present, is likely to spur in the coming days as the government has initiated affordable housing projects as a part of their five-year plan.
A 40,000mt bulk deal of shredded from the US West Coast was reported for April shipment at $297/mt cfr Port Qasim, down from a previous deal at $306/mt in late February. Seven steelmakers in Karachi together have booked this bulk deal to save on the increased freight charges. Shipping lines including Maersk and MSC have hiked charges effective April.
The weekly Davis Index for containerized shredded dropped by $4/mt to settle at $301/mt cfr Port Qasim on Friday. Early this week, trades for containerised shredded concluded at $302-305/mt cfr Qasim which subsequently fell to $300/mt cfr Port Qasim.
The Davis Index for Dubai origin HMS 1 settled at $300/mt cfr Port Qasim, down by $3/mt from the prior week. Offers for mix consisting of #1 HMS and P&S were at $300-305/mt cfr Qasim, up by $5/mt from the prior week. The Davis Index for Dubai origin HMS 1&2 (80:20) settled at $290/mt cfr Port Qasim, down by $5/mt from the prior week. Offers were at $295/mt cfr Port Qasim.
The Davis Index for P&S settled at $305/mt cfr Port Qasim, down by $5/mt from the prior week.Containerised HMS 1&2 (80:20) from the UK and US traded at $280-285/mt cfr Port Qasim, down by $10/mt from the prior week.
South Africa #1 HMS was offered in the range $290-295/mt cfr Port Qasim, but there were no bids in the market.
The Davis Index for Busheling settled at $308/mt cfr Port Qasim, down by $10/mt from the prior week. Busheling traded at $308-310/mt cfr Qasim and offers were at $315/mt cfr Qasim.
Pakistan’s domestic scrap and billet prices were mixed this week.
The Davis Index for commercial Bala billets inched down by PKR250/mt from a week ago to PKR85,500/mt ex-yards Punjab inclusive of local taxes.
The Davis Index for G-60 billet rose by PKR250/mt to PKR92,000/mt cfr Qasim from the prior week.
The weekly index for Pakistan’s domestic high-grade scrap equivalent to shredded settled unchanged at PKR66,500/mt ex Punjab yard. The shortage of domestic ferrous scrap continued in the markets.
Pakistan’s currency depreciated to PKR160.08 on Friday against US$ 1, from 154.30 on March 6. Mills raised rebar offers to cover increased raw material costs. The Davis Index for G-60 rebar settled at PKR107,250/mt ex-plant Karachi, up PKR1000/mt from a week ago. Mills in the southern region offered rebar at PKR108,000-109,000/mt ex-plant Karachi. The Davis Index for G-60 rebar settled at PKR106,250/mt ex producers, up by PKR1000/mt from the prior week.