Pakistani mills are restocking on higher imported ferrous scrap offers amid positive global cues. The resumption in Chinese steel trades with prices soaring by 4-6pc post holidays on Thursday boosted sentiments.
Domestic ferrous scrap prices maintained an uptrend rising more than PKR2,500-3,000/mt since Monday. Strong demand from construction pushed billets up by PKR500-1,000/mt ($4-8/mt) ex-works on Monday.
The daily Davis Index for containerized shredded, Thursday, rose by $8.32/mt to $453.13/mt cfr Port Qasim. Around 5,000mt shredded from the UK/EU sold at $450/mt cfr Port Qasim on Wednesday with most sellers offering above $455-460/mt cfr Port Qasim. Yards have stopped entertaining lower bids.
In Turkey, rising rebar export offers lifted domestic rebar asking rates of Kardemir and ICDAS. The daily index for US-origin HMS 1&2 (80:20) settled at $417.5/mt cfr Turkey, up $3.75/mt from the prior day. Turkish mills are expected to resume bulk trades pushing prices up by $20-30/mt till the end of February, said traders.
The daily index for US-origin HMS 1&2 (80:20) settled at $416.43/mt cfr Port Qasim, up by $8.36/mt. Suppliers started offering material for exports with subcontinental buyers raising bids. Until last week, most stayed away from overseas markets amid firm domestic prices. A few yards offered containerized HMS 1&2 (80:20) at $410-415/mt cfr Port Qasim.
On Thursday, offers for #1 HMS and P&S from UAE were at $420-425/mt cfr Port Qasim depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20), rose by $11/mt to $417/mt cfr Port Qasim. Trades for the UAE HMS 1&2 (80:20) in containers reported at $415-417/mt cfr Qasim. Mills opted for Dubai HMS 1&2 (80:20) as shredded offers have increased to the extent that many mills find it unviable until rebar prices recover.
Domestic scrap prices rise on tight supply
In Lahore, Bala billet prices traded at PKR102,500-103,000/mt ($645-648/mt) ex-works, up by PKR1,000/mt from a day prior. Demand, however, is still short of mills’ expectations.
Prices for domestic scrap Pure Q Toke equivalent to shredded heard at PKR82,200-82,500/mt ex-yards Lahore, up PKR700-1,000/mt from Wednesday. Rebar offers at PKR127,000-128,000/mt ex-works Karachi, excluding discounts. A few large-scale mills offered material above PKR130,000-132,000/mt ex-works.