Demand for imported ferrous scrap in Pakistan improved this week as mill operations gained pace. Buying activity is expected to rise, as indicated by the conclusion of a bulk cargo booking. Landed cost of bulk cargoes lowered as freight charges decreased on a fall in fuel cost and increased availability of vessels. Imported ferrous scrap demand is expected to increase in the near term amid limited domestic scrap availability and rising  steel demand.  

 

One of the leading steel mill in Lahore booked bulk cargo of 32,000mt comprising shredded at $282.5/mt cfr Qasim. 

 

The Davis Index for US-origin containerized shredded settled at $290/mt cfr Port Qasim on Friday, up by $3/mt from the prior day and by $6/mt from the prior week. Bids for shredded were at $280-282/mt cfr Qasim on Friday, with no sellers interested in those levels. Most UK and European suppliers are offering shredded at $290-295/mt cfr Qasim. 

 

The daily Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $268/mt cfr Qasim, up by $3/mt. The Davis Index for UAE-origin #1 HMS settled at $278/mt cfr Port Qasim, up by $12/mt from the prior week. Offers for a mix of #1 HMS and P&S were at $275-280/mt cfr Qasim. But trades were reported at $273-275/mt cfr Qasim. 

 

Most South African suppliers are struggling with export permits issues. Still, a few trades for South African HMS 1&2 (80:20) were reported at $265-270/mt cfr Qasim, up by $5/mt from the prior week. 

 

The daily index for US-origin HMS 1&2 (80:20) was at $268/mt cfr Qasim, up by $3/mt. Most US yards raised their offers to $270-275/mt cfr following rising demand in their home country. UK-origin bundles scrap traded at $230/mt cfr Qasim.

 

The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe settled at $256/mt cfr Qasim, up by $16/mt. Offers from European yards were at $255-260/mt cfr Port Qasim, up by $15-20/mt from the prior week. The index for Latin American HMS 1&2 (80:20) settled at $258/mt cfr Qasim, up by $8/mt from the prior week. 

 

The Davis Index for P&S settled at $285/mt cfr Port Qasim, up by $5/mt from the prior week. Offers for UK-origin P&S were at $290/mt cfr Qasim on Friday. The Davis Index for busheling was at $301/mt cfr Qasim, up by $8/mt from the prior week. Trades concluded at $295-302/mt cfr Qasim. 

 

Many mills are likely to be in the market for ferrous scrap, as they ramp up production. Reports of Chinese private investors floating plans for steel plant of 2mn mt annual capacity were also heard. 

Pakistan’s domestic billet & rebar prices down 

The weekly Davis Index for commercial bala billet settled at PKR88,000/mt ex-yards Punjab inclusive of local taxes, down by PKR500/mt from the prior week. 

The Davis Index for G-60 billet settled at PKR 93,000/mt cfr Qasim, down by PKR500/mt from the prior week. The Davis Index for G-60 rebar settled unchanged at PKR111,500/mt ex-plant Karachi and PKR111,000/mt ex-plant Punjab, both down by PKR500/mt from the prior week. 

Domestic ferrous scrap prices increased in Pakistan again this week on limited availability. The weekly index for Art Pure Q equivalent to shredded settled unchanged at PKR 67,000/mt ex-works. Offers for domestic mixed HMS and P&S scrap were at PKR68,000/mt delivered mill, unchanged from the prior week. 

  

($1=PKR163.29)

 

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