Gradual recovery in domestic steel demand and the resulting rise in rebar and billet prices boosted sentiment for imported scrap in Pakistan. Inventories with mills are also low. Should rebar sales pick up further, deals for containerized ferrous scrap could also rise in the coming days.
The budget announcement for the upcoming financial year is scheduled for June 11, which kept a few participants watchful for any major duty changes. Mills resumed inquiries keeping traders positive. Chinese steel prices also showed signs of recovery with prices for iron ore ferrous content 62pc reaching $210/mt cfr China. Pakistan HRC makers were eyeing another price hike.
The daily Davis Index for containerized shredded, Wednesday, was at $519.14/mt cfr Port Qasim, up by $4.14/mt. Small tonnage deals were reported in the range of $517-520/mt cfr Qasim for material from the UK/EU on Tuesday and Wednesday. Offers for US shredded were at $515-518/mt cfr Qasim on Wednesday.
In Turkey, resumption in bulk trades at slightly higher prices revived sentiment. Rebar export offers rose by $10/mt following strengthening global cues. The daily Davis Index for imports of US-origin HMS 1&2 (80:20), Tuesday, rose by $1.82/mt to $501.82/mt cfr Turkey.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, increased by $6/mt to $489/mt cfr Port Qasim. Trades for UAE-origin mixed #1 HMS and P&S were above $500-505/mt cfr Qasim. Most mills started purchases of imported scrap on depleting inventories as the demand outlook seems stable for the near term. The daily index for US-origin HMS 1&2 (80:20), Wednesday, settled at $495/mt cfr Port Qasim, up by $5/mt. Offers rose following firm cues from the US domestic market.
On Wednesday, domestic Bala billet prices rose by PKR500/mt to PKR117,000/mt ($749/mt) ex-works Lahore. Local rebar prices were up by PKR1,000/mt to PKR130,000-130,500/mt ex-works.
Followed by a price hike announced by Amreli Steel by PKR3,000/mt on June 8, other rebar makers, including Faizan, Naveena, Abbas, and Agha Steel, raised offers for rebar by PKR2,500-3,000/mt to PKR145,000-146,000/mt ex-works.
Domestic ferrous scrap traded firm 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) were up by PKR500/mt to PKR92,500-92,800/mt and PKR93,700-94,000/mt ex-yards Lahore, respectively.
($1=PKR155.54)