Pakistan: Imported Scrap Prices Move Down in Recent Trades
SteelMint learned in recent conversations with industry participants that imported scrap offers to Pakistan have softened further after the market inquiries resumed recently post-Eid holidays, as global markets have been on a downtrend since a couple of weeks, along with low demand in the domestic market. Trades are expected to pick up in the coming week as the market has observed slow returning.
SteelMint’s assessment for containerized Shredded 211 scrap from US, Europe and UK stands at USD 300-303/MT, CFR Qasim, lowering by around USD 5-7/MT against last week’s report, with one of the Lahore based steelmakers booking 2000 MT of Shredded from UK at USD 300/MT CFR, amid other deals in the said range. However few suppliers from Europe and UK were also reported to have offered Shredded scrap in the range of USD 296-300/MT, CFR amid supply-demand gap.
As per prices maintained by SteelMint, prior to this, Shredded scrap prices in Pakistan had fallen in the range of USD 300/MT, CFR levels 2 years back during May-Jun'17 while it remains to be seen if the prices have bottomed out now. Participants are likely to wait for couple of days more in order to have clarity on the price direction after more deals are concluded.
Trades for HMS scrap remained low, with the continuing of stricter clearance rules by the customs and import duty on HMS, while FBR announced recently that important documents will be inspected at retailers place. Dubai origin HMS is thus witnessing limited buying activity from Pakistan, while prices dropped further this week. HMS 1&2 (80:20) from Dubai is currently being offered at around USD 285/MT, CFR Qasim, and HMS 1 is assessed at around USD 290-295/MT, CFR as per quality. No major trades for European HMS were reported.
Pakistani Rupee has more or less stabilized now after over 3 months of volatility as the currency has stood in the range of 158-160 since the last couple of weeks.
Domestic steel prices remain stable, market slowly returning back - With Heavy monsoon being observed in many parts of the country, steel demand has remained low, while labour shortage due to Eid holidays has continued at some major regions in the country. Once the market fully returns in a few days, a slight rise in domestic steel prices can be expected as a recent increase in transportation costs by the imposition of new axle regulations might affect overall costs. In slight relief to traders, the FBR has said that no action will be taken on CNIC violations by retailers, till September end however the rule will continue to stay.
In Northern region rebar average selling prices remain at around PKR 116,000-117,000/MT, ex-works (USD 724-730) while offers from Southern (Karachi region) steel mills reported in the range of PKR 117,000-118,000/MT. Bala Billet and CC Billet (60) also remain stable standing at PKR 89,000/MT (USD 555) and PKR 97,000/MT (USD 605) respectively.
source: SteelMint
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