Imported scrap prices to Pakistan fell in recent trades in containers, while buyers continued average trades, with several deals reported. Offers have continued to fall amid an ongoing downtrend in the international market, with participants expecting slight further price correction.
SteelMint’s assessment for shredded 211 from UK/Europe stands at $275/t CFR Qasim level, dropping by around $ 4-6/t against the opening of last week when offers were recorded at around $ 278-280/t CFR. Some decent quantity of Shredded 211 sold at $275/t CFR from yards in UK in recent days, while last week few deals from some premium yards were reported at $ 277-278/t CFR.
A Karachi based steel manufacturer booked a shredded at $ 275-278/t CFR from UK/Europe, as per quality during last week closing. USA origin shredded is being offered at around $270-273/t and deals were concluded at $270-271/t CFR from the USA, in the last 1-2 days.
“Mostly demand is stable in the market with mills continuing to procure regularly, in spite of falling prices, given the unpredictability of the market” shared a steelmaker in Punjab region.
Most industry participants on the buyers’ side as well as traders maintained that prices may fall further by later this week, while buying will continue on consistent demand, however, for the demand from end users to reach regular levels of last year, it will still take considerable time.
HMS scrap offers remained less, with few offers from Middle East (Kuwait, Bahrain and Dubai) origin being reported at $ 265-270/t CFR Qasim, for higher grade HMS 1 (no ci gi), while lower grades of HMS (1&2) were offered upwards of $250/t level.
Domestic Market:
Domestic steel market mostly remained stable this week with no major changes in price. Additionally, already subdued steel sales further slowed down due to ongoing closing of the financial year 2019-2020. Deformed bar prices remained stable at PKR 112,000-113,000/t for Punjab and PKR 113,000-114,000/t for South region, ex plant basis, inclusive of taxes.
Local scrap prices (eq to Shredded) observed a fall by PKR 1,000/t this week and stood at PKR 70,000/t inclusive of taxes, following the falling trend of imported scrap amid steel prices.
| Particular (Average Selling Prices) | 30-June’20 | Last assessment on 23-June’20 | Change |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 70000 | 71000 | -1,000 |
| Bala (Local Billet) | 93000 | 93000 | 0 |
| CC Billet (Grade 40) | 96500 | 96500 | 0 |
| CC Billet (Grade 60) | 97500 | 97500 | 0 |
| Deformed bar (G-60), Ex-Punjab/KPK | 112,000-113,000 | 112,000-113,000 | 0 |
| Deformed bar (G-60), Ex-Sindh (Karachi) | 113,000-114,000 | 113,000-114,000 | 0 |
Leave a Reply