Demand for imported ferrous scrap is likely to recover next week as Eid holidays have come to an end. Inventories with most mills are drying up with production picking up pace. In the coming week, activities are expected to return to usual levels.
The Davis Index for US-origin containerized shredded settled at $283/mt cfr Port Qasim on Friday, unchanged from the prior day, but up by $4/mt from the prior week. Bids for shredded were at $275/mt cfr Qasim on Friday, with no sellers interested in those levels. The UK and European traders offered shredded $285/mt cfr Qasim. Though mills are running out of scrap and have resumed enquiries, they were hesitant to accept these levels, given the market volatility. Turkish mills bought aggressively. On the other hand supply from the US yards is improving and bulk freight rates have dropped. Market participants are thus awaiting clarity in price direction.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $263/mt cfr Qasim, unchanged from Thursday but up by $8/mt from prior Friday. Trades for South African HMS 1&2 (80:20) were reported at $260-265/mt cfr Qasim, up by $5/mt from the prior week.
The index for US-origin HMS 1&2 (80:20) was at $260/mt cfr Qasim, up by $2/mt from Thursday. Most US yards were keen on bulk offers to Turkey than containers offers to the Asian market.
The Davis Index for Dubai-origin #1 HMS settled at $266/mt cfr Port Qasim, up by $1/mt from the prior week. Offers for a mix of #1 HMS and P&S were at $265-270/mt cfr Qasim, unchanged from the prior week.
A few offers for HMS 1&2 (80:20) from the UK and Europe were at $245-255/mt cfr Port Qasim, up by $10/mt from the prior week. Latin American HMS 1&2 (80:20) traded at $250/mt cfr Qasim, up by $5/mt from the prior week.
The Davis Index for P&S settled at $280/mt cfr Port Qasim, up by $7/mt from the prior week. P&S from Brazil and the United Kingdom traded at $280/mt cfr Qasim, up from the prior week. Busheling was offered at $290-295/mt cfr Qasim, up by $5/mt from the prior week.
Pakistan’s domestic billet & rebar prices mixed
The weekly Davis Index for commercial Bala billet settled at PKR88,500/mt ex-yards Punjab inclusive of local taxes, up by PKR500/mt from the prior week. Trades were very limited amid Eid holidays. Demand for steel in rural areas has dipped and is likely to be hurt further with farmers in some regions of Pakistan starring at economic losses due to the ongoing locust attacks.
The Davis Index for G-60 billet settled at PKR 93,500/mt cfr Qasim, down by PKR500/mt from the prior week. The Davis Index for G-60 rebar settled unchanged at PKR112,000/mt ex-plant Karachi and PKR111,500/mt ex-plant Punjab, both down by PKR500/mt from the prior week.
Domestic ferrous scrap prices increased in Pakistan again this week on limited availability. The weekly index for Art Pure Q equivalent to shredded settled at PKR 67,000/mt ex-works, up by PKR500/mt from the prior week. Offers for domestic mixed HMS and P&S scrap were at PKR68,000/mt delivered mill, unchanged from the prior week.