SteelMint learned in recent conversation with participants that imported scrap offers to Pakistan have continued downtrend following a recent correction in Turkey prices, however, no significant change in local steel prices since past couple of weeks retained trades limited again this week. Buyers remain in an observant mode as no major procurements are being reported at the moment in the market.
SteelMint’s assessment for Shredded scrap moved down in the range USD 325-330/MT, CFR Qasim down USD 10/MT on W-o-W basis against USD 335-340/MT, CFR last report. Limited trades of containerized Shredded being reported at around USD 326-328/MT from USA and UK recently. Asking rates from the UK and Europe heard at around USD 330/MT, CFR.
Offers for Middle East HMS 1 heard in the range USD 330-332/MT, CFR but no buyer was much interested at these levels, on the other hand, HMS 1 from UAE reported sold in containers at around USD 327/MT, CFR Qasim yesterday. UAE origin HMS 1&2 scrap is mostly being offered in the range USD 322-325/MT, CFR Qasim.
HMS scrap prices from the UK plunge – In recent deal confirmed, HMS 1 scrap from UK origin sold in containers in the range USD 307-310/MT, CFR Qasim and HMS 1&2 (80:20) scrap from Europe and UK is being quoted at around USD 305/MT, CFR Qasim.
Local steel market remains flat – Local steel market has seen no changes with little-to-no activity since the past couple of weeks. Prices and demand also remained flat as participants remain waiting for signs of developments in the March month amid warming up weather. Gadani’s Shipbreaking market left behind as end buyers struggle to come in terms with price trends in other sub-continent markets with no report of new sales being concluded again this week.
Pakistan Steel Melters Association appeals to grant some time – Pakistan Steel Melters Association (PSMA) has appealed the government to grant some time in order to discuss issues being faced by steel industry which is the largest revenue generating sector in the country but into the deep crisis. Issues like a high sales tax at PKR 13/unit electricity consumed, huge tax evasion and muddling up of accounts of melting furnaces installed in sugar mills are crafting huge losses to the exchequer and to the industry.
SteelMint’s local steel price assessment –
| Average Prices, Ex-work Punjab and Lahore, inclusive of taxes | |||
| Particular | 26-Feb’19 | Last assessment on 18-Feb’19 | Change |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 58,500-59,000 | 58,500-59,000 | 0 |
| Bala (Local Billet) | 74,000-74,500 | 74,000-74,500 | 0 |
| CC Billet (Grade 40) | 80,000-80,500 | 80,000-80,500 | 0 |
| CC Billet (Grade 60) | 80,500-81,000 | 80,500-81,000 | 0 |
| Deformed bar (G-60) | 94,000-95,000 | 94,000-95,000 | 0 |
Source: SteelMint Research
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