Pakistani ferrous scrap importers decided to stay in ‘wait-and-watch’ mode to gain more clarity on the global price trend. Steel prices are falling in China while they remain on an uptrend in scrap supplier countries. Also, Turkish mills continued bulk ferrous scrap purchases paying higher. Mixed opinion on global prices led to a slowing of trades in the Indian subcontinental amid buyers’ resistance.
In the northern region, large scale steelmakers decided to hike rebar prices on Saturday by another PKR5,000/mt to manage high input costs and margin squeeze. This is the second price hike after the Eid holidays, which has raised rebar prices by PKR10,000/mt since mid-May. But bearish steel sales continue to discourage ferrous scrap importers.
The daily Davis Index for containerized shredded, Monday, settled at $515/mt cfr Port Qasim, down $0.25/mt from Friday as buyers refused to book large volumes at high prices. Slow sales despite a hike in rebar price turned mills cautious. EU/UK suppliers’ expectations for shredded unchanged at $515-520/mt cfr Qasim, while bids dropped to $510/mt cfr Qasim and lower on Monday.
In Turkey, mills continued to book bulk cargoes on sustained steel prices. The daily Davis index for US-origin HMS 1&2 (80:20) rose to $513.19/mt cfr Turkey, up $2.81/mt on Friday. A mill booked 50,000mt of mixed cargo.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Monday, fell to $500/mt cfr Port Qasim, down $2/mt from Friday. Following a drop in Indian bids, sellers were interested to sell to Pakistan, however, demand remained weak. Offers for UAE-origin mixed #1 HMS and P&S at $505-510/mt cfr Qasim.
The daily index for US-origin HMS 1&2 (80:20), Monday, settled at $502.5/mt cfr Port Qasim, down $1.25/mt. Trades for the US origin HMS very almost halted on high offers and buyers’ preference for short-transit scrap.
In the domestic market, high input costs reflected an increase in the asking rates of rebar, however, markets were not fully operational. Most workers have not returned to work.
With the second price hike announced late last week, rebar prices in Punjab rose to PKR142,500-143,000/mt ex-works in line with prices in Karachi.
Trades for domestic billet and scrap remained sluggish on Monday as most furnaces have not yet fully resumed operations. Prices unchanged from Friday. Fresh offers are likely to be rolled out this week.