Buying activity for imported ferrous scrap gained momentum in Pakistan as prices dropped. Trades for HMS from the UAE were reported at lowered rates, while offers for shredded recovered after a few sales concluded at reduced prices, earlier this week. A majority of market participants waited as domestic steel sales were yet to resume as estimated.
The daily Davis Index for containerized shredded, Thursday, was at $527/mt cfr Port Qasim, down $0.5/mt. Trades for containerized shredded were reported at $523-525/mt cfr Qasim while for a prompt delivery, mills were heard paying $528-530/mt cfr Qasim. On Thursday, offers were in the range $528-532/mt cfr Qasim depending on the terms of delivery.
Chinese prices declined further amid stricter production cuts and rising COVID-19 cases. The daily index for US origin HMS 1&2 (80:20) dropped to $455.71/mt cfr in Turkey amid lowered bids. A decline in global cues, discouraged buyers from active bookings in South Asia.
The Pakistani currency remained volatile against USD and depreciated to PKR164.4 against $1 on Thursday from PKR163.5 a day prior.
Offers for imported HMS from the UAE dropped following an ease in the supply of HMS and lowered bids. The daily Davis Index for UAE-origin HMS 1&2 (80:20) dropped by $6/mt to $490/mt cfr port Qasim. Trades for UAE-origin mixed (#1 HMS and P&S) concluded at $505-508/mt cfr Port Qasim, down $5-7/mt from yesterday.
Amid suspended buying inquiries on high freight component, the daily index for US-origin HMS 1&2 (80:20), Thursday, settled at $487.5/mt cfr Port Qasim, down $1/mt.
Rebar trades slowed on Thursday, leading to a PKR500-1000/mt decline in prices.
Offers for rebar G-60 jumped to PKR167,000-168,000/mt ex-works Karachi and PKR165,000-166,000/mt ex Punjab, down PKR500-1000/mt. Local rebar offers too were on downtrend to PKR154,500-155,000/mt ex-works Lahore on Thursday.
Extending the downward movement, domestic Bala billet prices on Thursday dropped further by PKR1,500-2,000/mt to PKR136,000-136,500/mt ($827-830/mt) ex-works. A few construction projects could slow down as Muharram starts. Following a surplus in supply, prices lost steam.
In the domestic scrap market, Art Q toke scrap (equivalent to a mix of HMS and P&S) traded flat at PKR106,000-106,500/mt ex-yard Lahore and Pure Q toke scrap (equivalent to shredded) remained unchanged at PKR108,000-108,500/mt ex-yard Lahore.