Imported ferrous scrap offers in the Pakistan market were firm despite the domestic steel demand remaining under pressure. Although mega infrastructure projects have resumed, the pace of work is still slow. In the semi-finished steel market, mills raised their offers for Bala billets as they looked to pass on the increase in input costs to users. Rebar prices have remained flat for over a month.
The Davis Index for containerized shredded, Monday, rose by $0.99/mt to $330.67/mt cfr Port Qasim. Trades for containerized EU and UK-origin shredded were at $330-332/mt cfr Port Qasim. Most offers from the EU/UK were at $335/mt cfr Port Qasim, hitting a 17-month high.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $320/mt cfr Port Qasim, up by $2/mt from Friday. Mills preferred shredded over HMS scrap to avoid paying extra taxes imposed on the imports of the latter. Offers for Dubai-origin #1 HMS in containers were at prices above $325/mt cfr Port Qasim on Monday. The index for US-origin HMS 1&2 (80:20) settled at $321.18/mt cfr Port Qasim, up by $1.51/mt from Friday. Offers for the grade from the US and UK were above $320-325/mt cfr Port Qasim.
Domestic steel trends flat
In the domestic market, Bala billet prices were at PKR91,000-91,500/mt ($567-572/mt) ex-works Punjab. Leading Karachi-based producers offered rebar at PKR109,500-110,000/mt ex-works, at prices which were unchanged from the prior week. In Punjab, mills kept their G-60 rebar offers above PKR109,000-109,500/mt ex-works. Domestic Pure Q toke scrap, equivalent to shredded sold at PKR69,500-70,000/mt del Lahore mill, at prices up by PKR500/mt from the last week.
Shipbreaking market active
Pakistani recyclers have been active for scrapped ship imports. Many recyclers booked vessels actively after a long gap. Scrapped container ships and tankers were offered at $360-370/ldt cfr Pakistan in the Gadani market.
Many Gadani Recyclers have booked vessels scheduled to arrive this month. However, towards the year-end, this aggression in demand is likely to drop.
With the reduction in the power tariffs announced by the government, input costs for mills could reduce and have an impact on rebar offers. The Pakistan Association of Large Steel Producers (PALSP) has hailed such a reduction in power tariffs for businesses under the Small and Medium Enterprises category.