Imported ferrous scrap offers remain on an uptrend hitting six weeks high but buyers took a pause on Wednesday after active trading in the last few days. A shortage of containers and a likelihood of a declining supply towards the year-end could maintain a ‘flat to up’ trend in the South Asian markets in the next few weeks. Steelmakers are optimistic of a gradual resumption of infrastructural projects and improved demand from end-users.  

 

Pakistan

Pakistan ferrous scrap importers booked containers for quicker deliveries at prices higher than prior deals. A gradual resumption in mega infrastructure projects is likely to improve steel demand in the country. However, on Wednesday, deals slowed as the price hike was absorbed by the market.

 

The daily Davis Index for containerized shredded, Wednesday, rose by $1.02/mt to settle at $322.33/mt cfr Port Qasim. Trades for UK-origin shredded in containers were heard at $321-323/mt cfr Port Qasim. Offers increased to $325/mt cfr Port Qasim following global cues. If mills continue to restock, prices could rise further, said traders.    

 

Containers of Dubai-origin #1 HMS traded at $313-315/mt cfr Port Qasim. Offers for P&S sarya scrap were at $315-320/mt cfr. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $311/mt cfr Port Qasim, up by $2/mt from Tuesday. Mills chose to buy shredded over HMS scrap this week. Offers from South American ferrous scrap suppliers were at $305-310/mt cfr Qasim.  

The index for US-origin HMS 1&2 (80:20) settled at $308.93/mt cfr Port Qasim, up by $1.93/mt from Tuesday. 

 

In the domestic market, Bala billet prices were unchanged at PKR90,000-90,200/mt ($560-562/mt) ex-works Punjab amid weak demand.

  

Domestic Pure Q toke scrap, equivalent to shredded sold at PKR68,300-68,500/mt del Lahore mill, down PKR300/mt from Saturday. 

 

Leading Karachi-based producers offered rebar at higher prices PKR110,000-111,000/mt ex-works to maintain spread between scrap and rebar due to bullish imported scrap prices.

  

The Pakistani rupee has appreciated to PKR160.65 against the US $1 from 162.5 levels last week boosting sentiments in the import market.

 

Bangladesh  

Bangladeshi mills resumed trades for imported scrap with a view that prices would stay ‘flat to up’ for the rest of the year. Trades slowed on Wednesday after active buying late last week. 

 

The Davis Index for containerized shredded, Wednesday, settled at $328.96/mt cfr Chattogram up by $0.75/mt. Offers were at $330-335/mt cfr Chattogram, but a few trades reported at $325-330/mt cfr Chattogram. P&S scrap traded at $335/mt cfr Chattogram from South America and Brazil.  

 

The index for containerized US-origin HMS 1&2 (80:20), Wednesday, settled at $319/mt cfr Chattogram, up by $0.79/mt from last Tuesday. Trades for the UK and US-origin HMS 1&2 (80:20) were at $315-320/mt cfr Chattogram. The index for Latin America-origin HMS 1&2 (80:20) settled at $314/mt cfr Chattogram, up by $1/mt from Tuesday. 

 

South American yards sold HMS #1 at $320/mt cfr Chattogram. 

 

Following higher imported scrap prices, domestic steel and scrap prices in Bangladesh moved up. Domestic shipbreaking scrap equivalent to P&S traded at BDT32,000-32,500/mt ($377.45-386.90/mt) ex-yard Chattogram, up BDT1,000/mt from the prior week. HMS 1&2 (80:20) was priced at BDT29,000-29,500/mt ex-yard Chattogram, up BDT500/mt from late last week. Dhaka-based finished steel producers sold rebars at BDT49,500-50,000/mt ex-works, up BDT1000/mt from the prior week.  

 

($1= PKR160.50; BDT84.77)

 

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