Pakistan: Imported Scrap Prices Soften; Trades Limited Amid Ramadan

SteelMint learned in recent conversations with industry participants that imported scrap offers in containers to Pakistan have shown stability after observing softening towards the closing of the last week

Most of offices and banks remained closed today on starting of Ramadan month also, buying inquiries heard limited in the market. Many of the importers are waiting for more clarity on global prices.

SteelMint’s assessment for containerized Shredded scrap stands at USD 327-332/MT, CFR Qasim, slightly down against USD 332-325/MT, CFR levels that were seen during last week. Offers for Shredded scrap from UK and Europe heard USD 327-332/MT, CFR Qasim. Offers from US were hovering in the range of USD 325-328/MT, CFR Qasim but no major deal reported.

“Although global scrap prices corrected considerably in bulk cargoes sold by US suppliers recently, offers in containers for Shredded scrap have softened marginally amid limited global availability. On the other hand, Pakistan scrap importers may continue regular procurement on limited scrap inventories in hand” shared a source.

Offers from Dubai for HMS 1 are being reported limited as the availability of labour for loading and transportation usually turns difficult amid Ramadan affecting the supply. However, offers are expected to be rangebound at around USD 328-332/MT, CFR. South African HMS 1&2 assessed at around USD 330/MT, CFR Qasim.

Local steel market observes no major change - Domestic steel market conditions remain more-or-less the same since last one months’ time. Many of mini steel mills are troubling to make significant profits since more than a quarter especially located in Lahore and Gujranwala region in Punjab. It is expected that local steel prices should move up by pushing up demand as the majority of mills are making losses.

Domestic scrap prices turn volatile - Domestic scrap prices equivalent to Shredded was being reported at PKR 61,000-61,500/MT (USD 431-435), ex-works inclusive of taxes. However, tight local scrap supply is expected to lift prices by another PKR 500-1000/MT recently.

SteelMint’s assessment of local billet stands at PKR 78,500-79,000/MT (USD 555-558) ex-works. Rebar sales in Northern region turned down on slowdown in construction projects as prices have fallen to PKR 97,000-98,000/MT, ex-works (USD 685-692) while rebar asking rates in the Southern region are being reported at and above PKR 100,000/MT, ex-works inclusive of local taxes.

Pakistani Rupee continues hovering around 141.5 levels against US Dollar for yet another week.