Imported ferrous scrap trades in Pakistan continued to remain slow amid lack of domestic demand and cash constraints. Domestic steel prices are expected to correct further as production has reached 100pc. Imported scrap demand is limited as mills are buying only to meet immediate requirements. Few traders were heard and buyers opted for lower-priced material. As Pakistan will observe 10 days of Muharram, trades are expected to slow further.
The Davis Index for containerized shredded Wednesday settled at $312/mt cfr Port Qasim, up by $3/mt from Tuesday. Limited trades for Europe-origin shredded were heard at $312/mt cfr Port Qasim. Offers from UK-based yards, however, remained stable for the grade at $312-315//mt cfr Port Qasim on Tuesday with most steel mills in Karachi still looking for shredded at $305-308/mt cfr Qasim.
The index for US-origin HMS 1&2 (80:20) settled up $6/mt to $295/mt cfr, with few trades heard at index level. The index for UAE-origin HMS 1&2 (80:20) settled marginally up by $1.6/mt to $293/mt, with deals at the index level.
In the domestic market, Bala billet prices were in the range PKR90,800/mt ex-works Punjab with shredded scrap Q toke at PKR69,950/mt ex-works Lahore flat from Monday.
Bangladesh’s imported scrap market witnessed demand recovery but limited trades were reported in the containers market on Wednesday. Major mills continued booking bulk cargoes for their regular needs. Most mills are now operating at 90-100pc capacity resulting in speedy consumption of raw materials which would increase import of ferrous scrap, as per market participants. The impact of heavy rains and floods has subsided, and production activity is now expected to pick-up.
The Davis Index for containerized shredded settled at $325/mt cfr Chattogram, up by $7/mt from Tuesday, with deals heard at the index price. A few trades also concluded for US-origin HMS 1&2 (80:20) at $300-305/mt cfr Chattogram. Supplies from Australia and New Zealand were limited.
The index for Latin America-origin HMS 1&2 (80:20) settled at $294/mt cfr Chattogram, up by $1.27/mt from Tuesday. A few containers traded at near-index price, with bids reported at $290/mt cfr Chattogram on Wednesday, offers for #1 HMS from Brazil, Chile, and Europe were at $300-305/mt cfr Chattogram, with bids at $295-298/mt cfr Chattogram from small scale steelmakers.
The index for US-origin HMS 1&2 (80:20) was at $304/mt cfr Chattogram, up by $2/mt from Tuesday. Few deals were heard at $300-305/mt cfr.
($1= PKR168.46; BDT84.78)