Pakistani mills booked HMS scrap over shredded this week to fulfill immediate melting requirements. The firm offers for shredded, but a decline in HMS prices widened the gap between the two grades above $50/mt. Rebar prices also increased by PKR5,000/mt last week and boosted the market sentiment. Once the new financial year begins on July 1, mills could actively book scrap.
Amid stable demand and increased inquiries, UAE sellers kept their offers firm. The Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $485/mt cfr Port Qasim, up by $2/mt from Friday. Deals for UAE-origin mixed #1 HMS and P&S were at $490-495/mt cfr Port Qasim, while offers were at $500/mt cfr Qasim on Monday.
The index for US-origin HMS 1&2 (80:20), Monday, settled at $496.25/mt cfr Port Qasim, unchanged from Friday. Availability of scrap from the US and the UK remains tight on steady demand in their respective domestic markets. Container freight rates remained elevated resulting in increased landed costs.
The daily Davis Index for containerized shredded, Monday, was at $535/mt cfr Port Qasim, up by $2.5/mt. Most offers on Monday remained at $535-540/mt cfr, however, mills kept bids at around $530-533/mt cfr Qasim.
In Turkey, imported ferrous scrap offers remained unchanged. In a silent market, the daily Davis Index for imports of US-origin HMS 1&2 (80:20) was unchanged at $496.91/t cfr Turkey on Friday. On Monday, domestic rebar prices showed a ‘flat to down’ trend as demand remains subdued. Russia’s export tax could boost global steel prices, believe participants.
Domestic demand rises
Ahead of the financial year-end, many mills were busy closing their account books. Post-July 1, trading is expected to resume amid low inventories. On tight supply for ferrous scrap and resulting rise in input costs, major rebar producers mills raised asking rates to PKR150,500/mt ex-works Karachi and PKR149,000-149,500/mt ex-works Punjab. Trades for rebar could pick once construction activities improve post-monsoon.
Domestic Bala billet prices were above PKR117,500-118,000/mt ex-works, up PKR1,000/mt from last week’s close. Offers for G-60 billet were at PKR124,500-125,000/mt ex-works Punjab.
Amid firm imported scrap offers and tight domestic supply, prices for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded), Monday, rose PKR300-500/mt to PKR94,500-94,700/mt and PKR95,800-96,000/mt ex-yard Lahore, respectively.
For Gadani shipbreakers, offers were at $560-570/ldt cfr Qasim. Pakistan remained the most active market in the subcontinent.