Imported ferrous scrap inquires in Pakistan were slow on Monday after trading resumed post-Eid holidays. Rebar prices, however, jumped by up to PKR5,000/mt ($33/mt) on Monday in anticipation of improved construction steel demand post-Eid holidays.
Large steelmakers are attempting to pass high input costs to end-consumers. On Monday, Mughal Steel, Faizan Steel in Punjab and Amreli Steel in Karachi hiked rebar prices. Driven by high raw materials prices, offers for rebar rose to PKR141,500-143,500/mt ex-works on Monday, up from PKR135,500-137,500/mt before closure for Eid holidays. In the domestic market, domestic Bala billet offers rose to PKR112,000-112,500/mt ex-works Lahore, up PKR500/mt.
Market participants are gradually returning from holidays and so are workers who had left for their hometowns during Ramadan. But mills are likely to resume scrap restocking only after ensuring global price sustain in the coming days.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $503/mt cfr Port Qasim, up $3/mt. On Monday, offers for UAE-origin mixed #1 HMS and P&S were at $510/mt cfr Qasim. UAE-based sellers turned active as demand has started improving in the subcontinental markets.
Trades for shredded are expected to pick up in the coming days on limited inventories. Sellers continued to raise offers taking cues from global markets. The daily Davis Index for containerized shredded, Monday, settled at $520/mt cfr Port Qasim, up $0.50/mt from Friday. From late last week, a few deals reported at $515-520/mt cfr Qasim for material from the EU/UK.
Offers were above $520-525/mt cfr Qasim, however, buyers stepped back to access market conditions after steel prices in China dropped late last week.
The daily index for US-origin HMS 1&2 (80:20), Monday, remained unchanged at $505/mt cfr Port Qasim. Offers firm driven by high global steel prices. Most buyers opted for short-transit supply over the long haul amid several logistics challenges and delays at ports resulting in an additional cost for importers.
Domestic ferrous scrap supply remained tight. Offers for Art Q toke scrap equivalent to a mix of HMS and P&S, Monday, rose to PKR90,500-91,000/mt ex-yard Lahore, up PKR500/mt. Asking rates for Pure Q toke scrap (equivalent to shredded) rose above PKR92,000/mt ex-yards Lahore, following a rise in rebar prices.