Importers of ferrous scrap in Pakistan remained active this week over other markets in the Indian subcontinent. Prices were supported by a rise in finished steel demand in the domestic market. Finished steel prices in the country halted their fall as they flatlined this week. Market participants expect an uptick in finished steel prices as early as the next week.
The Davis Index for US-origin containerized shredded settled at $284/mt cfr Qasim on Friday, up by $1/mt from Thursday and by $3/mt from the prior Friday. Steelmakers actively booked imported shredded amid lowering ferrous scrap inventories.
Trades for shredded were reported at $280-282/mt cfr Qasim. Prices subsequently climbed to $285-287/mt cfr Qasim for UK and European-origin material towards the week’s close.
The Davis Index for HMS 1&2 (80:20) from UAE settled at $263/mt cfr Qasim, unchanged from Thursday but down by $2/mt from a week ago. UAE-origin super scrap or a mix of #1 HMS and P&S traded at $265-270/mt cfr Qasim. However, most buyers remained away from UAE scrap due to the ban announced on exports by the UAE government.
The daily index for US-origin HMS 1&2 (80:20) was at $258/mt cfr Qasim, down by $2/mt with trades in the range $255-260/mt cfr Qasim. US yards held their offers at $260-265/mt cfr Qasim for HMS 1&2 (80:20).
South African government has announced a ban on the exports for two months period at the minimum as the government investigates the impact of exports on the domestic market. Approval of export permits remains halted and thus there were no fresh offers.
The weekly Davis Index for the UK and European-origin HMS 1&2 (80:20) on Friday settled at $255/mt cfr Qasim, up by $2/mt. A few trades were reported at the index price despite offers of around $258/mt cfr Port Qasim.
The index for Latin American HMS 1&2 (80:20) settled at $255/mt cfr Qasim, up by $4/mt from the prior week and trades concluded at the index price.
The Davis Index for P&S and busheling settled at $283/mt and $295/mt cfr Port Qasim, respectively, both up by $3/mt from the prior week. Trades, however, were limited for higher grades scrap.
Domestic Bala billet prices drop marginally
The rise in domestic steel demand supported imported ferrous scrap trades. Many government infrastructure projects, however, are yet to resume fully.
The weekly Davis Index for commercial Bala billet settled at PKR93,250/mt ($555/mt) ex-works Punjab on Friday, inclusive of local taxes, down by PKR750/mt from the prior week. Trades were heard in the range of PKR93,000-93,500/mt ex-works over the week. Prices in the latter part of the week dropped due to increased supply as production rates rose to the usual levels.
The Davis Index for G-60 billet settled at PKR97,00/mt ex-Punjab plant, also down by PKR500/mt from the prior week.
The Davis Index for G-60 rebar settled at PKR113,500/mt ($675.86/mt) ex-works Karachi, unchanged from a week ago. Rebar trades concluded at PKR113,000-114,000/mt ex-plant Karachi over this week. Demand for rebar was higher in the Northern region than South Pakistan this week.
In Punjab, trades for G-60 rebar were reported at PKR112,000-113,000/mt ex-plant, flat from the prior week. A clear picture of the price direction will emerge next week.
Domestic ferrous scrap prices in Pakistan were unchanged from the prior week despite limited supply and rising imported scrap prices. The weekly index for Art Pure Q equivalent to shredded settled at PKR70,000/mt ex-works. Trades for domestic mixed HMS and P&S scrap were at PKR71,000-71,500/mt delivered Lahore mill on Friday.
($1=PKR167.93)