Pakistan: Imported Scrap Prices Continue Uptrend on Active Buying

Imported scrap trades to Pakistan, which have been particularly strong since the last 10 days, received an additional boost after the confirmation of the bulk vessel booking after a gap of over 2 years. Although suppliers have successively been increasing offers on strong global market, active buying activities continued, with many mills looking to restock at feasible levels, given the uncertainty about price hike in the present market.

This week, Mughal Steel, a top Steelmaker from Punjab region, booked a 30,000 MT of bulk cargo, comprising of 26,000 MT of Shredded scrap at USD 306/MT, CFR and 4,000 MT of P&S at USD 311/MT CFR Qasim, from a USA recycling yard, for March shipment.

SteelMint’s assessment for containerized Shredded 211 scrap from UK/Europe currently stands in the range of USD 310-318/MT CFR, rising by USD 8-10/MT over the last one week, while witnessing an incremental increase of USD USD 4/MT against the closing of last week. Presently offers from UK/European origins have climbed up to USD 315-318/MT, CFR range.

Container bookings for shredded were very active all through the week, with many bookings at USD 311-312/MT concluding till yesterday from Europe as well as North American origins, while after further hike in offers today, workable price too will drive up, on high material requirement by mills currently.

“Sold around 5,000-6,000 MT of shredded at closing of last week at around USD 310/MT, and now prices even higher; traders are pushing market upwards and buyers resisting” shared a reliable market trade source.

Many sources also shared that the freight transit times for container bookings have increased, due to the ongoing container shortage from European origins, which has also resulted in a rise in prices.

HMS offers from UAE have recently witnessed increase due to tightness in supply, and HMS 1 super (no ci gi) are being offered at USD 305/MT CFR, while good bookings from India recently has kept the prices supported. HMS from other origins were not witnessed in significant

Domestic steel market remains subdued – On account of consistent increase in imported scrap prices, local billet and scrap prices moved up marginally, however no improvement in finished steel sales has kept steel bar prices unchanged for over 6 weeks now. Steel demand is expected to remain weak, with all major infrastructural projects involving Chinese officials stalled since novel corona-virus outbreak, in addition to the slowdown in overall infrastructural sector.

In the northern region, rebar’s average offer prices were reported at around PKR 105,000-106,000/MT, ex-works (USD 679-686), while southern (Karachi region) steel mills are offering at PKR 107,000.