Pakistan’s ferrous scrap importers continued to be more active over their Indian and Bangladeshi counterparts. Finished steel prices in the country also remained high driven by increased input cost.
Offers moved up following strong global cues amid news of bulk bookings in Turkey. But opinions on price direction remain mixed.
The Davis Index for US-origin containerized shredded settled at $281/mt cfr Qasim on Friday, up by $1/mt from Thursday and by $5/mt from the prior week. Offers for shredded from the UK and Europe suppliers were at $280-285/mt cfr Qasim.
The Davis Index for HMS 1&2 (80:20) from UAE settled at $265/mt cfr Qasim, up by $2/mt from Thursday and by $7/mt from a week ago. The Davis Index for UAE-origin #1 HMS settled at $268/mt cfr Port Qasim, up by $5/mt from the prior week. UAE-origin super scrap or a mix of #1 HMS and P&S traded at $265-270/mt cfr Qasim.
The daily index for US-origin HMS 1&2 (80:20) was at $262/mt cfr Qasim, up by $2/mt with trades in the range $260-265/mt cfr Qasim.
Most South African suppliers are still struggling with export permit issues and there were no fresh offers in the market. US yards held their offers at $260-265/mt cfr Qasim for HMS 1&2 (80:20).
The weekly Davis Index for HMS 1&2 (80:20) from the UK and Europe, Friday, settled at $253/mt cfr Qasim, up by $3/mt. A few trades were reported at the index price although offers from European yards were at $255/mt cfr Port Qasim.
The index for Latin American HMS 1&2 (80:20) settled at $251/mt cfr Qasim, up by $6/mt from the prior week and trades concluded at the index price.
The Davis Index for P&S settled at $280/mt cfr Port Qasim, up by $4/mt from the prior week. Trades for UK-origin P&S were at $280/mt cfr Qasim with offers then rising to $285/mt cfr Qasim on Friday. Suppliers preferred only those buyers whose cash flow remains healthy. Many importers in the country are still to emerge over the economic losses arising from COVID-19 lockdowns.
The Davis Index for busheling was at $292/mt cfr Qasim, up by $3/mt from the prior week. Trades for busheling concluded at $290-292/mt cfr Qasim.
Pakistan’s domestic steel prices flat to up
With the economy on a path to recovery, major steelmakers in the country have raised their daily output to 70-80pc. Downstream demand also rebound this week and domestic steel prices rose by PKR1,000/mt from the prior week.
The weekly Davis Index for commercial Bala billet settled at PKR94,000/mt ex-yards Punjab on Friday, inclusive of local taxes, up by PKR1000/mt. Trades were in the range of PKR93,000-94,000/mt ex-works however, many buyers are still dealing with liquidity issues.
The Davis Index for G-60 billet settled at PKR97,500/mt ex-Punjab plant, up by PKR500/mt from the prior week.
The Davis Index for G-60 rebar settled at PKR113,500/mt ($671.31/mt) ex-plant Karachi, unchanged from a week ago. Rebar trades concluded at PKR113,000-114,000/mt ex-plant Karachi over the week. The demand for rebar was higher in the Northern region than in South Pakistan.
In Punjab, trades for G-60 rebar were reported at PKR112,000-113,000/mt ex-plant, unchanged from the prior week. Many buyers are likely to be in the market next week when the market is expected to present a clear price direction.
Domestic ferrous scrap prices in Pakistan rose by PKR500-1,000/mt from the prior week due to 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 PKR71,000-71,300/mt delivered Lahore mill on Friday.