Local steel market trend has rebounded which was sharply down last week while falling global imported scrap prices compelled scrap importers to pick up restocking activities in the near terms.
In recent conversations with market participants, SteelMint learned that Pakistan scrap importers have turned optimistic on the corrections in the global scrap prices. However, not many trade deals have concluded at corrected prices amid sustained effect of Ramadan festive, extreme summer weather and electricity supply cuts. Many of the importers remained eyeing for further corrections as buying interest still remain lower by USD 5-7/MT than the current offer levels being quoted from suppliers.
The latest price assessment for USA HMS (80:20) dropped at USD 335/MT, CFR Turkey. Following declining global scrap prices by USD 5-10/MT W-o-W, offers to Asian markets have corrected this week.
The price assessment for Shredded scrap from UK/Europe and USA stood in the range of USD 380-385/MT, CFR Port Qasim. Few limited quantity deals for Shredded 211 scrap from UK also heard to have sold at USD 375-377/MT, CFR although not many deals reported as suppliers remain little resistive at these levels.
HMS 1&2 (80:20) scrap from UAE and South Africa assessed at around USD 365-370/MT, CFR Qasim. These prices have moved marginally down by USD 5-8/MT on W-o-W basis. While no bulk offers heard.
Domestic steel prices rebound this week – Last week Pakistan’s local Billet (Bala) and domestic scrap prices were fallen sharply down by PKR 3000-3500/MT(USD 26-30) W-o-W. During the mid of last week, Bala prices dropped upto PKR 69500-70500/MT(USD 601-609) levels, following which a lot of buyers turned active for billet purchases. The sharp surge in demand in the local market pushed the prices up again which have rebounded back to earlier levels now.
Participants are believing that the local market will not turn downward again and likely to sustain these levels moreover the scrap restocking activities to pick up in a weeks’ time in Pakistan.
Current average prices for local billet (Bala) assessed at around PKR 73,000-74,000/MT (USD 631-639) and grade 60 CC billet assessed at around PKR 79,000-80,000/MT (USD 683-691), ex-plant inclusive of taxes. Rebar Grade 60 prices assessed stable at PKR 93,000-94,000/MT (USD 803-812), ex-works in Punjab region inclusive of taxes.
Pakistan average local steel reference prices as on 29th May –
| Average Prices in PKR/MT, Ex-work Punjab, Pakistan inclusive of taxes | |||
| Commodity | 29 May’18 | 1 Week ago | W-o-W Change |
| Local Scrap | 52,000-53,000 | 50,000-51,000 | +2000 |
| Bala (Local Billet) | 73,000-74,000 | 69,500-70,500 | +3500 |
| CC Billet (Grade 60) | 79,000-80,000 | 78,000-79,000 | +1000 |
| Rebar (Grade 60) | 93,000-94,000 | 92,000-93,000 | +1000 |
Source: SteelMint Research
Ship breaking market at Gadani region witnessed steady sentiments amid few enquiries heard. Ship cutting prices have moved down by USD 10/LDT on W-o-W basis and assessed at USD 420/LDT for general dry bulk cargo; at USD 450/LDT for containers and at USD 430/LDT for tankers on CNF Pakistan basis respectively. A 42,831 LDT VLCC sold last week at price of USD 406/LDT, CNF Pakistan.
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