Pakistan: Imported Scrap Offers Move Down; Local Steel Prices Stable

SteelMint learned in recent conversation with market participants that imported scrap market has turned silent despite marginal correction in offers. Local steel prices remained almost supported as many mills are not operating at full capacities.

Local market witnessed multitude of issues turning it uncertain about when it will improve for good.

Containerized Shredded 211 from Europe and UK is being offered in the range USD 335-340/MT, CFR Qasim, down by USD 8-10/MT W-o-W. Few leading recyclers offered Shredded in the range of USD 340-345/MT, CFR but not much buying interest seen at these levels and no significant deal reported.

Limited offers were available for Dubai origin HMS 1 on reduced supply since couple of weeks. Offers heard at around USD 330-335/MT, CFR Qasim, down 3-5/MT W-o-W basis. Local availability remains low in Dubai while local demand heard to have slightly improved resulting in high costing for exports. However, buyers are holding back on an anticipation of further price drop.

Local market endures several issues, turns uncertain - After witnessing massive protest against suspension of high rise building projects last week, the Government has assured issuance of NOC certificates to builders within a week. Ongoing political turmoil and liquidity crunch keep market uncertain about future demand.

The National Electric Power Regulatory Authority withheld the countrywide applicability of increase of PKR 1.27 per unit in electricity tariffs on some legal grounds, saying it lacked legal authority for want of quorum. While the concerns of cheap Chinese and Iranian billets being imported in the country increased further on recent drop of Chinese steel prices over the past couple of weeks.

Local steel prices remain unmoved - In Punjab region, deformed rebar assessed in the range PKR 100,000-101,000/MT, ex-works varying on quality and thickness. In Sindh region price assessed at PKR 102,000-103,000/MT, ex-works. Deformed premium G-60 rebar prices heard in the range PKR 104,000-106,000/MT, ex-Karachi inclusive of taxes.

Ship breaking market remains quiet - According to reports, Gadani based buyers remained extremely mute on volatile sentiments in local market. End buyers could not fetch any significant tonnage as local offering remained lowest in the subcontinent. Local ship plate prices assessed at PKR 76,000/MT stable as against the last report. While Ship breaking prices stand stable at USD 420/LT for dry bulk cargo, at USD 440/LT for containers and USD 430/LT for tankers.

source: SteelMint