Pakistan: Declining Steel Prices Lower Bids for Imported Scrap
SteelMint learned in recent conversations with industry participants that imported scrap offers to Pakistan have moved down considerably on account of a continuous global downturn, however, buyers are targeting further correction as buying interest continues to remain lower. Domestic sales remained slow ahead Muharram coupled with heavy rainfall keeping demand low.
SteelMint’s assessment for containerized Shredded 211 scrap from UK stand at USD 289-291/MT, CFR Qasim, sharply declining by another USD 5-6/MT against last week’s report, with decent trades being concluded at these prices. Few deals for shredded were also reported at around USD 287/MT while buying interest stood even lower.
As per data maintained by SteelMint, prior to this the price for imported shredded scrap to Pakistan had dropped to USD 287/MT, CFR in early May’17, thus it can be inferred that prices are hovering at 2 years low.
Trades for HMS scrap remain low as strict custom inspection for Auto parts and higher import duty has kept landed cost for HMS scrap high, thus receiving limited interest from buyers.
With limited trades being observed, Dubai origin HMS scrap continued downtrend in terms of prices. HMS 1 (Super) is currently being offered at around USD 275-278/MT, while higher quality HMS (Sarya) is assessed at around USD 285-286/MT, CFR. Amid slow activity for HMS scrap, LMS bundles from UAE are currently being traded in good quantities at around USD 255-260/MT CFR.
Limited offers for European origin HMS scrap stood at around USD 265/MT, CFR. Pakistani Rupee appreciated this week amid recent stability, standing at around 156-157 levels against USD.
Domestic steel prices decline, sales slow down - Due to sharp decrease in imported scrap prices as well as low demand for finished steel in the market the domestic prices have witnessed downtrend in the last week. Heavy rainfall and starting days of Muharram has also dampened the local demand. Many mills have reportedly reduced prices of Finished Steel and Rebars by PKR 2,000-3,000/MT to clear their stock, while many undocumented sales were recorded, on strict STRN rules. Buyers are remained cautious with CNIC details due to unfavorable tax policies by FBR
In Northern region rebar average selling prices assessed at around PKR 113,000-114,000/MT, ex-works (USD 722-729) meanwhile Southern (Karachi region) steel mills are offering rebar at around PKR 115,000/MT ex works (USD 735)
Local scrap and Billet prices observed further downfall, with Bala Billet and CC Billet (60) standing at PKR 88,000-89,000/MT (USD 563-569) and PKR 94,000-95,000/MT respectively.
source: SteelMint
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