Imported Scrap Prices Edge Down; Local Steel Market Stable

SteelMint learned in recent conversation with market participants that local steel prices in Pakistan have stabilized now. Imported scrap prices have edged down in minor trades reported. Buyers seem interested however stand in 'wait and watch' mode in order to have more clarity on global scrap prices with anticipation of further correction in the near term.

According to sources, Shredded scrap has come under pressure globally and few traders started offering at corrected levels on falling global scrap offers.

Shredded 211 is being offered in the range USD 317-320/MT, CFR Qasim from leading suppliers in USA and UK. SteelMint’s assessment falls by USD 5-7/MT on a weekly basis, however, no significant trades have been reported.

The limited quantity trades of Containerized Shredded 211 scrap concluded from Europe and US in the range USD 315-320/MT, CFR Qasim and Dubai HMS 1 at around USD 320/MT, CFR.

Offers for Middle East origin HMS in containers heard in the varied range of USD 315-325/MT, CFR depending on quality.

Local steel market stands stable - According to sources, the domestic steel market seems stabilized now. Many furnaces which had closed earlier have resumed the operations. The supply side seems improved however demand hasn't gained momentum yet.

Market conditions remained the same as last week while few steelmakers remained less working amid heavy winter conditions in some of the regions in Pakistan. Market likely to get more clear in the near future.

On a weekly basis, billet prices have inched down by PKR 500-1000/MT (USD 4-7) and deformed bar prices stand more or less stable.

In the Punjab region, average prices for Deformed bar G-60 reported at PKR 95,000-97,000/MT, ex-works and in the Sindh region at PKR 99,000-100,000/MT, ex-works.

Asking rates of Deformed G-60 bar stand at around PKR 105,000/MT, ex-Karachi from few leading steel mills, however, average G-60 rebar prices stand at around PKR 100,000-101,000/MT, ex- works.