Pakistani ferrous scrap importers stayed away from purchases pulling bids down sharply on Tuesday. Mirroring the pause in the Turkish bulk trades, mills in Pakistan decided to postpone trades to gain clarity on price direction. Buyers are eying a drop to resume trade. Domestic scrap prices remained high on limited supply.
The Davis Index for containerized shredded, Tuesday, settled at $456.25/mt cfr Port Qasim, down by $8.04/mt from Monday. Strong resistance from buyers lowered bids. Most buyers refused material above $450-455/mt cfr Qasim.
On the other hand, the UK and European suppliers held offers at $455-460/mt cfr Qasim, higher by $10-15/mt than levels acceptable to buyers. Offers could soon fall in the next couple of days and diffuse the stalemate between buyers and sellers. Market participants expect good restocking demand ahead of Ramadan, while activities are likely to slow down on limited operating hours from April 12 onwards.
The index for US-origin HMS 1&2 (80:20), Tuesday, settled at $435/mt cfr Port Qasim unchanged from Monday. Due to active demand in the domestic market, most suppliers stayed away from overseas trade.
Offers for #1 HMS and P&S from UAE at $435-445/mt cfr Port Qasim, depending on quality on Tuesday. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $428/mt cfr Port Qasim, down by $3/mt.
Domestic steel prices stagnant
Domestic steel demand has stagnated for over a month. On Tuesday, Bala billet prices in the domestic market were stable at PKR105,000-106,000/mt ex-works.
In the Lahore market, rebar offered at PKR131,000/mt ex-works. Major rebar producers kept asking rates at PKR135,000-137,000/mt ex-works Karachi.
Domestic scrap unchanged
Prices for Art Q toke scrap, equivalent to a mix of HMS and P&S, Tuesday, traded at PKR85,500-86,000/mt ex-yard Lahore. Offers for Pure Q toke scrap equivalent to shredded at PKR86,500-86,700/mt ex-yard Lahore.
Ship recycling yards are busy with cutting activities and offers for scrapped vessels ranged from $450-470/ldt cnf. Rebar made from re-rolling scrap was offered at lower prices compared to large steelmakers’ asking rates amid stiff competition among mills to reduce finished inventory before the Ramadan lull.
($1=PKR157.07)