Pakistan ferrous scrap buyers have adopted a wait-and-watch approach. But in the Indian subcontinent, they still remained the most competitive bidders. Trades could pick up in the coming days and aid prices further .
The government changed fixed import tariffs for imported steel and compressor scrap (ITP). At current price levels, the landed cost for ferrous scrap has thus increased by PKR1,500-2,000/mt, according to Davis Index sources.
The Davis Index for containerized shredded, Monday, settled at $471.43/mt cfr Port Qasim, up by $6.07/mt from Friday. Offers were in the range of $470-475/mt cfr Port Qasim. Limited volumes of shredded sold at $470-475/mt cfr Port Qasim.
Offers for bulk HMS 1&2 (80:20) were at $455-460/mt cfr Turkey. Amid rising rebar prices in the domestic market, Turkish mills are expected to raise their bids for the remaining tonnage of seaborne scrap for April shipment.
The daily index for US-origin HMS 1&2 (80:20) settled at $433.75/mt cfr Port Qasim, up by $3.75/mt amid firm offers and a healthy domestic steel outlook for March.
Trades for #1 HMS and P&S from UAE were reported at $440-445/mt cfr Port Qasim depending on quality. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $433/mt cfr Port Qasim on Monday. Dubai-based sellers preferred to sell in Pakistan where they fetched premium over other subcontinental markets.
Domestic billet and rebar up
Bala billet prices in the domestic market maintained an uptrend reaching PKR105,500-106,000/mt ex-works. Billet prices have recovered by PKR12,000/mt from their bottom two months ago. Some mills announced price hikes for rebar late last week with the remaining expected to follow suit soon. Rebar was offered PKR133,000-135,000/mt ex-works Karachi and PKR130,000-132,000/mt ex-works Punjab.
Domestic scrap up on shortage
Trades for Art Pure Q toke scrap equivalent to a mix of HMS and P&S, Monday, were at PKR84,000-84,500/mt ex-yard Lahore. Although prices for domestic scrap were under pressure early last week, by Friday, prices had gained enough to surpass the preceding week’s levels. Offers for Pure Q toke scrap equivalent to shredded were at PKR85,000-85,500/mt ex-yard Lahore.
In Gadani, shipbreaking scrap equivalent P&S traded at prices above PKR88,000/mt ex-yards. For shipbreakers, offers for vessels were in the range of $450-460/ldt amid improving sentiment.