Pakistan: Imported Scrap Offers Inch Down Amid Limited Buying Interest

In recent conversations with industry participants, SteelMint learned that imported scrap offers to Pakistan have come down marginally on slowing down of demand from buyers end. Less clarity globally and resistance from supplier yards to offer openly at lowered prices kept trade activities comparatively low.

Heavy rains in most regions of the country since last week and changes in new parameters of FBR for steel retailers and distributors push the domestic market in ‘wait and watch’ mode.

SteelMint’s assessment for containerized Shredded 211 scrap from US, Europe and UK stands at USD 310-315/MT, CFR Qasim, marginally down as against last week’s report, with few deals being concluded in this range. Offers from recyclers mostly remained at around USD 315-318/MT, but lower buying interest at around USD 310-312/MT kept trades limited.

Assessment for Dubai origin HMS scrap stands at around USD 300-305/MT, CFR, depending on quality with few offers also heard slightly below than these levels. On the other hand, good quality HMS 1 reported to have sold at USD 305-310/MT, CFR Qasim.

Pakistani Rupee depreciated slightly this week and stood at around 161 levels against USD.

Domestic steel market remains slow ahead of Eid holidays – Pakistan steel market likely to remain less active for almost 1 week after 10th August on account of Eid holidays. Drive against misdeclaration and under-invoicing has been initiated on the directives of FBR and customs departments. Domestic market conditions remained almost steady but prices are expected to soften on less activity on account of Eid holidays.

With a slight softening on weak demand, average rebar selling prices of Northern region’s steel mills assessed at around PKR 115,000-116,000/MT, ex-works (USD 715-721) while Southern (Karachi region) steel mills have kept rebar offers at around PKR 117,000-118,000/MT, ex-works. Assessment of CC billet G-60 stood at PKR 96,000-96,500/MT (USD 597-600).

Domestic scrap prices fall still buyers prefer imported scrap - Local scrap prices decreased by PKR 1,000/MT to PKR 65,500/MT ex-works however, stricter restriction of invoicing and less clarity on documentation keep buyers to prefer imported scrap.