Pakistani buyers have resumed imported scrap as strengthening global cues instilled positive sentiment in the market. In Turkey, imported scrap bulk offers have reached almost a 10-year high. Mills are expected to resume bookings for February shipments in the coming days which could be as many as 10-12 cargoes. Offers in the Pakistan market are thus are insufficient to cater to the rising buying interest.
US recyclers hinted at a possibility of another price hike in the US domestic market in January. Before these prices rise further, mills looked to restock material despite cash flow concerns. Offers for containerized imported scrap could rise by $10-15/mt in the coming days amid persisting container shortages.
The daily Davis Index for containerized shredded, Wednesday, jumped to $476.43/mt cfr Port Qasim, up by $5.93/mt as trades resumed. Trades for US and UK-origin containerized scrap were heard in the range of $475-478/mt cfr Port Qasim with buyers accepting current offer levels. Deals of 2,000mt of shredded each, from the US and UK were reported at $475/mt and $480/mt cfr Port Qasim, respectively, on Wednesday. Price levels for shredded could soon reach $490/mt cfr Port Qasim levels claimed a trader.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $449/mt cfr Port Qasim, up by $1/mt from Tuesday. UAE suppliers sold #1 HMS to Pakistani buyers at $450-455/mt cfr Port Qasim. While offers for containers of mixed #1 HMS and P&S sarya on Wednesday were at $455-460/mt cfr Qasim. The daily index for US-origin HMS 1&2 (80:20) settled at $450.71/mt cfr Port Qasim, up by $2.5/mt from Tuesday.
Billet and rebar
Domestic billet prices were firm, driven by high imported scrap prices. On Wednesday, prices for domestic Bala billets were unchanged at PKR106,500-107,500/mt ex-works and at PKR104,000/mt ex-works Lahore. In Karachi, all major rebar makers hiked prices citing high ferrous scrap prices in the international market. A major mill kept rebar asking rates at PKR134,500-135,500/mt ($837-841/mt) ex-works Karachi for 12-32mm rebar. Industry associations have appealed to the government to make necessary changes in tax structure to ensure prices normalize soon.
On Wednesday, local Art Q toke scrap equivalent to a mix of HMS and P&S was offered at around PKR86,000-86,500/mt ex-yard Lahore. Pure Q Toke (shredded) was offered at PKR87,000-87,500/mt ex-yards, flat amid rising demand and low availability. Offers for scrapped vessels climbed by $10/mt to $440-450/ldt cfr Pakistan.