Over the last one week, imported scrap prices to Pakistan have shot up significantly on strong global market, while at the same time, buying activities too have picked up. Unlike other South Asian markets who are hesitant at these price levels, Pakistani mills have been actively procuring in spite of the sharp rise in offers, for restocking necessities.
SteelMint’s assessment for containerized Shredded 211 scrap from UK/Europe currently stands in the range of USD 302-305/MT CFR, surging by USD 12-14/MT against beginning of last week. However, in comparison to the offers during the closing of last week, the prices have moved up by USD 3-4/MT.
Many Shredded bookings were observed at USD 302-303/MT from UK and European origins while a few bookings from USA were reported at USD 300/MT in the last couple of days, with mills buying actively. In the latest deal reported, 2000 MT of UK origin shredded scrap in containers was sold for USD 305/MT in last couple of days by a global trader.
“Many buyers who kept waiting for further drop in prices when it was at USD 280/MT levels, are now buying Shredded at USD 300-302/MT CFR levels, and in fact buying has increased since the uptrend begun” shared a reliable source.
HMS offers from UAE too have climbed up swiftly, with HMS 1 super (no ci gi) being offered at USD 296-300/MT CFR, while HMS 1&2 (8% ci gi) was offered at USD 285-290/MT, up by over USD 15-18 in just a weeks’ time, on global trend and improved buying. South African HMS was offered at USD 295/MT, amid limited inquiries.
Domestic steel market remains flat– Apart from a slight uptick in local billet prices, no significant changes were reported in the domestic market. Domestic steel prices are hovering at the same levels for around 5 weeks now, in spite of the volatility in raw material prices, due to continued low steel demand from end users.
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.
| Average Offer Prices) | 18 Feb’20 | Last Assessment on 11 Feb’20 | Change W-o-W |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 65000 | 65000 | 0 |
| Bala (Local Billet) | 84500 | 84000 | 500 |
| CC Billet (Grade 40) | 90500 | 90000 | 500 |
| CC Billet (Grade 60) | 91500 | 91000 | 500 |
| Deformed bar (G-60), Ex-Punjab/KPK | 105,000-106,000 | 105,000-106,000 | 0 |
| Deformed bar (G-60), Ex-Sindh (Karachi) | 106,000-107,500 | 106,000-107,500 | 0 |
Source: SteelMint Research
Leave a Reply