Boosted by a recovery in the domestic steel prices, Pakistani buyers turned active for containerised imported ferrous scrap on Thursday. Most mills returned to refill scrap inventories as finished steel sales to the construction industry gained momentum. The upcoming fiscal budget announcement by the Pakistani government scheduled for Friday, June 11 kept a few participants watchful of any major duty changes, while some expect financial stimulus, which could lift business sentiments.
The daily Davis Index for containerized shredded, Thursday, settled at $523.31/mt cfr Port Qasim, up by $4.17/mt. Mills raised their bids above $520/mt cfr Qasim for material from the UK/EU as inventories remain low. A few thin volume trades concluded at $520-525/mt cfr Qasim pushing expectations to $525-528/mt cfr Qasim on Thursday.
In Turkey, resumption in bulk trades from the Baltic, UK and the US origin at higher offers boosted sentiment further on Thursday. Rebar export offers rose $10/mt above $730/mt fob following strengthening global cues. The daily Davis Index for imports of US-origin HMS 1&2 (80:20), Wednesday, rose by $4.74/mt to $506.56/mt cfr Turkey.
In China, as steel inventories hit three month’s low and steel futures continued to recovery, sentiments strengthen up on Thursday. Prices for iron ore ferrous content 62pc jumped reaching above $212/mt cfr China on Thursday.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, increased by $5/mt to $494/mt cfr Port Qasim. Most traders from the UAE, however, are closely observing the supply side dynamics amid improved generation rates in the country. While depleting inventories at mills and stable steel demand outlook for the near term are supporting current offers. Trades for UAE-origin mixed #1 HMS and P&S above $505/mt cfr Qasim.
The daily index for US-origin HMS 1&2 (80:20), Thursday, settled at $497.5/mt cfr Port Qasim, up by $2.5/mt. Offers rose to $500/mt following firm cues from the US domestic market.
On Thursday, domestic Bala billet prices remained firm at PKR117,000/mt ($749/mt) ex-works Lahore. Local rebar prices were PKR130,500-131,000/mt ex-works Lahore.
Followed by a PKR3,000/mt price hike by Amreli Steel on June 8, other rebar makers, including Faizan, Naveena, Abbas, and Agha Steel, raised offers by PKR2,500-3,000/mt to PKR145,000-146,000/mt ex-works.
Also, leading HRC makers like International Steel and Aisha Steel announced price hikes lifting offers to above $1,000/mt fob China.
An uptick in global ferrous scrap prices lifted domestic scrap offers in Pakistan. Prices for Art Q toke scrap (equivalent to a mix of HMS and P&S) and Pure Q toke scrap (equivalent to shredded), Thursday, rose PKR500/mt to PKR93,000-93,300/mt and PKR94,300-94,600/mt ex-yards Lahore, respectively.
($1=PKR155.57)