Pakistani ferrous scrap importers stayed away from purchases amid firm asking prices. Trades are expected to pick up in the latter part of March before the Ramadan lull begins. Suppliers were unwilling to reduce offers amid hopes of strong global cues. In the last few days, domestic billet and rebar prices were rangebound on slow demand. Ferrous scrap prices, however, remained firm on short supply. Ship-breaking activities gained momentum last week and Gadani yards paid $10-20/ldt higher than the other two subcontinental ship recycling countries.
Amid rising offers and stalemate between buyers and sellers, the Davis Index for containerized shredded, Monday, settled at $464.29/mt cfr Port Qasim, up by $0.66/mt from Friday. Offers from the UK and European suppliers were at $465-470/mt cfr Port Qasim.
The index for US-origin HMS 1&2 (80:20) settled at $435/mt cfr Port Qasim, unchanged from Friday. As the domestic monthly scrap settlements for March in the US moved up by $50-70/gt from the last month, most yards kept offers firm in seaborne markets.
With trades slowing in Pakistan and India, offers for #1 HMS and P&S from UAE were unchanged at $440-450/mt cfr Port Qasim, depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $431/mt cfr Port Qasim, down by $4/mt. Successive weak demand has dampened suppliers’ sentiment and most reduced asking prices as they looked to sell material before Ramadan.
Domestic steel prices stagnant
Domestic steel demand has remained stagnated for over a month. Bala billet prices in the domestic market were unchanged at PKR105,000-106,000/mt ex-works.
In the Lahore market, rebar was offered at PKR131,000/mt ex-works, T section and Guarder structure was offered at PKR120,000/mt ex-works and PKR127,000/mt ex-works.
Major rebar producers kept asking rates at PKR135,000/mt ex-works Karachi.
Domestic scrap up on shortage
Offers for Art Pure Q toke scrap equivalent to a mix of HMS and P&S, Monday, were unchanged to PKR85,500-86,000/mt ex-yard Lahore. Offers for Pure Q toke scrap equivalent to shredded were at PKR86,000-86,500/mt ex-yard Lahore.
Shipbreaking scrap equivalent P&S traded at prices above PKR92,000/mt ex-yards. Ship recycling yards were busy with cutting activities and offers for scrapped vessels were in the range of $450-470/ldt cnf. Rebar made from re-rolling scrap was offered at lower prices compared to large steelmakers asking rates.