Pakistani mills moved sideways hoping for a further drop in ferrous scrap prices in the coming days. A silent Turkish bulk market has turned buyers cautious as to whether prices have already bottomed-out.
The daily Davis Index for containerized shredded, Monday, dropped by $11.25/mt to $412.5/mt cfr Port Qasim. Prices hit almost a seven-month low. Ahead of the Chinese New Year holidays, there is a possibility of prices falling further, said traders.
Late last week trades for shredded from the UK and EU heard at $412/mt and $415/mt cfr Qasim, respectively. On Monday, mills bid at $400-410/mt cfr Qasim, however, sellers hoping for a rebound decided to stay away from the market.
Mills are expected to turn active for restocking if Turkish mills resume trades at the higher prices, believe importers. The daily index for US-origin HMS 1&2 (80:20) settled at $383.57/mt cfr Port Qasim, down $3.93/mt. There is a possibility of a drop in the US ferrous scrap prices in February amid easing supply on improved collection rates, however, the quantum of drop would be around $50/mt anticipate participants.
Dubai-based suppliers faced a lot of resistance from buyers as they raised offers by $15-20/mt on Friday. Traders from UAE offered #1 HMS and P&S at $385-390/mt cfr Port Qasim, depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $380/mt cfr Port Qasim down $5/mt.
Domestic steel flat
Domestic steel and ferrous scrap prices in Pakistan remained stable on mixed global sentiments. On Monday, domestic Bala billet prices remained more or less flat at PKR98,000-99,000/mt ex-works Lahore.
Domestic Art Q toke scrap equivalent to a mix of HMS and P&S offered at PKR80,500-81,000/mt ex-works Lahore, while Pure Q Toke (shredded) traded at PKR82,500-83,000/mt ex-yards. Limited supply and rising demand pushed domestic scrap up in Pakistan amid overall positive sentiment.
Asking rates for G-60 rebar heard at PKR130,000-135,000/mt ex-works, while local rebar traded at PKR112,000-113,000/mt ex-works. A few mills held their retail prices but offered discounted rates to increase sales.