Ferrous scrap importers in Pakistan, Monday, were in wait and watch mode to gain clarity on the global price trend. Mills were reluctant to accept higher offers despite low inventories. On the other hand, domestic steel prices stayed continued their uptrend due to the depreciation of the Pakistani rupee and high input costs.
Imported shredded scrap prices on Monday stabilised following the decline last week. The daily Davis Index for containerized shredded, Monday, was unchanged at $527.5/mt cfr Port Qasim. Trades for shredded in small quantities reported in the range $524-530/mt cfr Qasim. Large scale yards, however, held offers hoping for the market to rebound as demand recovers. A few deals for the UK and EU-origin shredded reported at $525-530/mt cfr Qasim.
Ferrous scrap sellers in UAE were upbeat on Monday expecting an increase in price amid rising demand. The daily Davis Index for UAE-origin HMS 1&2 (80:20) climbed up by $2/mt on steady demand to $495/mt cfr port Qasim. Trades for UAE-origin mixed #1 HMS and P&S continued at $510-515/mt cfr Port Qasim supported by a widening spread between ferrous scrap and finished steel in Pakistan.
The daily index for US-origin HMS 1&2 (80:20), Monday, settled at $487.5/mt cfr Port Qasim unchanged from Friday. US domestic monthly trades completed with prices down $20-30/gt for August deliveries. Most yards are expected to resume offers to Asian buyers amid easing supply to keep prices under pressure.
Large-scale mills in Pakistan hiked rebars prices last week amid healthy sales. Offers for rebar G-60 jumped up to PKR167,500-168,500/mt ex-works Karachi and Punjab, maintaining the uptrend of more than a month. Local rebar offers above PKR155,000-156,000/mt ex-works Lahore.
For domestic Bala billet prices rose PKR1,500-2,000/mt to PKR140,000-140,500/mt ($852-855/mt) ex-works. A policy change on sales tax value for steel products is likely to support steel producers and avoid under-invoicing. Ship recyclers, however, could face some challenges due to this move as vessels are priced above the fixed values.
In the domestic scrap market, Art Q toke scrap (equivalent to a mix of HMS and P&S) traded at PKR106,500/mt ex-yard Lahore and Pure Q toke scrap (equivalent to shredded) at PKR108,500/mt ex-yard Lahore.