In recent conversation with market participants, SteelMint learned that Pakistan steel market has resumed back activities in full swing with prices on uptrend now. After observing almost two weeks’ of silence on Eid holidays, major steelmakers have turned active for both international and local trades. Limited inventories of scrap could result in increasing purchases at higher prices shortly. Imported scrap offers have moved up by USD 10-12/MT on W-o-W basis.
Pakistan’s customers have increased inquiries for imported scrap and many of them remained negotiating with buying interest slightly below current offers. However, sellers seem not desperate to sell at low prices and it is hard to find cheaper scrap anymore on rising global scrap prices.
Offers for Shredded scrap in containers are learned in the range of USD 352-355/MT, CFR Qasim from Europe and UK. While few offers from USA based recyclers are quoted in the range of USD 357-360/MT, CFR Qasim. However, buying interest is seen at levels of USD 348-350/MT, CFR. For time being not much materials have been booked yet but buyers are likely to book scrap shortly on limited inventories in hand and positive outlook on local steel market.
HMS 1&2 from South Africa is being offered at USD 350/MT, CFR and HMS 1 from UAE assessed at USD 353/MT, CFR today, up USD 10-12/MT W-o-W.
Local steel market resumes operation in full swing, prices move up – According to sources, local steel market in Pakistan has turned positive and prices have moved up PKR 1500-2500/MT (USD 12-20) W-o-W with improving demand for Local billet (Bala), CC billet G-60 and G-60 deformed bar.
Local steel prices assessed as on 4th Sept’18 –
| Average Prices, Ex-work Punjab and Lahore, inclusive of taxes | ||||
| Particular | 4th Sept’18 | 28th Aug’18 | W-o-W Change | |
| PKR/MT | USD/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 51,500-52,500 | 417-425 | 47,000-48,000 | 4500 |
| Bala (Local Billet) | 71,000-72,000 | 576-583 | 69,000-70,000 | 2000 |
| CC Billet (Grade 60) | 77,000-78,000 | 625-633 | 75,000-76,000 | 2000 |
| Deformed bar (G-60) | 95,000-96,000 | 770-777 | 95,000-96,000 | 0 |
Source: SteelMint Research
Apart from this, I beams prices heard at PKR 94,000/MT, Ex- Lahore and small mills deformed bars prices heard at PKR 83,000-85,000/MT, ex-works.
Local scrap remains cheaper over imported – Currently, local scrap in Pakistan is cheaper over imported by around PKR 1,500-2,500/MT (USD 12-20) depending on the quality and location. Local scrap prices have moved up by upto PKR 4500/MT W-o-W. Few of the customers are preferring local scrap for time being however, it seems not sufficient to fulfill whole demand. Local scrap (pure super toke scrap) equivalent Shredded is heard at PKR 51,500-52,500/MT, ex-works. While ship cutting steel plate prices in Pakistan assessed stable at PKR 75,000/LTD.
Ship breaking market turns active with intent to pace up – According to reports, after receiving cutting permissions in Gadani market end buyers now can start absorbing their acquisitions and shift inventory off their plots. With this, ship recycling industry is observing positive sentiments amid rising enquiries and offers. It seems that post-Eid period has become the ideal time for buyers to get into the buying after extremely quiet summer. Prices remained unchanged again this week at USD 410/LDT for general dry bulk cargo, at USD 435/LDT for containers and at USD 425/LDT for tankers on CNF Pakistan basis respectively.
Leave a Reply