Pakistan: Imported Scrap Offers Up Further Upto USD 10
SteelMint learnt in recent conversations with market participants that the imported scrap offers to Pakistan have rallied up further this week after the global market continued to strengthen last week. Trades are yet to pick up after the recent uptrend, with buying activities remaining slow for the 3rd week in a row. Continued slow down in domestic steel market and ongoing 2-day strike has also kept most steel mills away from active procurement.
SteelMint’s assessment for containerized Shredded 211 scrap from UK/Europe stands at USD 280-285/MT, CFR Qasim, up by USD 8-10/MT against last week’s report. Few bookings for European origin Shredded scrap were reported at USD 280-282/MT CFR, while some prominent UK based yards are now offering at a premium of USD 3-4/MT. Average prices have shot up by over USD 30-35/MT in the last 4 weeks, following the global upsurge. Few mills shared that active buying in Sept’19 at lower prices and current production cuts by steelmakers have kept inventories sufficient.
Trades for imported HMS witnessed some improvement while prices continued to move up. UAE origin HMS 1 (super) is now being offered at around USD 272/MT CFR. Offers from several other origins were also witnessed, with European and UK origin HMS HMS 1&2 (80:20) being reported at USD 267-270/MT, while South African origin HMS standing at around USD 275/MT CFR. Few offers for turning from European suppliers were heard at USD 248/MT CFR.
Domestic market trades remain slow amid strike - All Pakistan Traders Association has called for a two-day nationwide strike on 29th and 30th Oct’19, protesting against several anti trader policies by the current govt such as mandatory CNIC submissions by traders. As per sources, few steel industry participants have also supported the strike, having been expressing dissent against several new tax policies by the govt.
As the finished steel demand has remained very low amid the current slowdown, the prices have inched down again after observing a hike in the previous week, in spite of the sharply rising imported scrap prices. In the northern region, rebar’s average offer prices were reported at around PKR 108,000-109,000/MT, ex-works (USD 696 - 703), while Southern (Karachi region) steel mills are now offering at PKR 109-110,000/MT (USD 703 - 709) ex-works, down by PKR 1000/MT on a weekly basis.
Local scrap eq to shredded stood firm on support from global scrap uptrend, currently standing at PKR 63,000/MT (USD 406) ex-works.
source: SteelMint
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