Pakistan: Imported Scrap Prices Unchanged Amid Stability in Domestic Steel Offers

SteelMint learned in conversation with industry participants that the imported scrap market has remained majorly stable. Trade activities remained slow as customers stand a bit concerned about domestic support and clarity on global levels.

SteelMint’s assessment for containerized Shredded scrap stands at USD 335/MT, CFR Qasim, slightly up against last week’s report of USD 332-335/MT, CFR. Limited trades of Shredded scrap have been booked recently at around USD 335/MT, CFR against USD 332-334/MT levels heard during closing last week.

“Although trade volume is very slow, sellers are not willing to negotiate anymore. Ramadan restocking in Turkey to keep sentiments supportive hence the market is indicating an upward push for imported scrap” shared a source.

According to sources, suppliers are quoting Dubai HMS 1 at around USD 335-337/MT, CFR depending on quality. In recent trades reported, HMS 1 from Middle East concluded at USD 335/MT, CFR. While South African HMS 1&2 reported having sold at around USD 330-333/MT, CFR Qasim.

Local steel market stands more or less stable on weekly premises - Domestic market conditions are more-or-less the same as the last week in Pakistan. No major development has been observed as liquidity issue remains a major problem since past couple of weeks. Also, the upcoming Ramadan month, in which demand usually becomes low results in a shortage of labor which may effect steel production activities.

Domestic scrap availability remains limited - Domestic scrap availability remains tight and shipbreaking plate supply has drained significantly. Local scrap prices equivalent to Shredded is being reported at PKR 62,500-63,000/MT (USD 441-445), ex-works inclusive of taxes, up again by PKR 1,000/MT (USD 7) on W-o-W basis. Local scrap and imported scrap prices are at par at the moment and may support scrap imports in the near terms.

Billet and Rebar offers almost stable on slow demand - SteelMint’s assessment of local billet stands at PKR 79,000/MT (USD 558) ex-works. Rebar prices in Northern region reported at around PKR 97,000-98,000/MT that of Southern at PKR 98,000-99,000/MT, ex-works inclusive of local taxes. Asking rates for steel bars G-60 heard stable from Southern region steelmakers.

USD/PKR exchange rate has remained pretty stable over the last week and further depreciation seems limited.