Imported scrap offers to Pakistan escalated sharply over the week amid ongoing uptrend in the global prices as Turkish offers continue to surge up daily. However, trades to Pakistan witnessed a slight rise in comparison to previous weeks, with steel mills actively restocking ahead of winter vacations for European yards from next week.
SteelMint’s assessment for containerized Shredded 211 scrap from UK/Europe presently stands in the range USD 298-302/MT, CFR Qasim, climbing up by around USD 8-10/MT against the closing of last week. Few yards in USA are offering at around USD 298/MT, while European yards have kept their offers higher on tighter supply, with UK suppliers offering at around USD 302-304/MT CFR.
Recently most trades for shredded scrap have taken place at USD 295-297/MT CFR with a global trader selling 3,000 MT of European material at USD 295/CFR yesterday, while several other bookings of 500-1000 MT each were reportedly concluded at USD 296/MT CFR earlier this week.
HMS scrap offers to Pakistan also witnessed a rise, with HMS 1 (super) from Dubai currently being reported in the range of USD 285/MT, up USD 5/MT against last week, while HMS 1 from other origins is now being quoted by suppliers at around USD 290/MT CFR.
Domestic steel prices yet to see impact of scrap price hike – In spite of the continuously increasing scrap import prices leading to rise in input costs, the finished steel prices have remained flat for a couple of weeks now after sharply falling last month, due to perennially low steel demand from the end users. Some market participants believe that local market can hope to improve by Dec-end this year, which may result in price hike in early Jan’20. Local scrap as well as Billet prices too stood mostly stable this week.
In the northern region, rebar’s average offer prices were reported at around PKR 104,000-105,000/MT, ex-works (USD 671-678), while southern (Karachi region) steel mills are offering at PKR 105-106,000/MT (USD 678-684) ex-works.
| Particularar (Average Offer Prices) | 10-Dec’19 | Last Assessment on 03-Dec’19 | Change W-o-W |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 64500 | 65000 | -500 |
| Bala (Local Billet) | 82500 | 83000 | -500 |
| CC Billet (Grade 40) | 88000 | 88000 | 0 |
| CC Billet (Grade 60) | 89000 | 89000 | 0 |
| Deformed bar (G-60), Ex-Punjab/KPK | 104,000-105000 | 104,000-105000 | 0 |
| Deformed bar (G-60), Ex-Sindh (Karachi) | 105,000-106,000 | 105,000-106,000 | 0 |
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