Imported scrap prices to Pakistan moved up this week, due to strengthening in global market, although Pakistani steel mills remained active for fresh bookings at increasing prices. Buyers are interested to secure material before the upcoming Eid holidays next week.
SteelMint’s assessment for Shredded 211 scrap from UK/Europe stands at $297/t CFR Qasim, up by around $3/t in comparison to $292/t CFR levels in the closing of last week, while, up by $7 against opening of the last week.
A major global trader sold a total of 2500 t of UK shredded 211 at around $ 295/t CFR in last two days. Many other deals at $295-296/t were reported for steel manufacturers in both Punjab as well as Karachi region.
Fresh offers for shredded from UK/Europe are being offered in the range of $295-300/t CFR Qasim. Some buyers’ are even ready to pay more than $296-297/t CFR in the coming days, as steelmakers look to replenish their scrap inventory.
HMS scrap offers from the middle-east remained almost stable this week. HMS 1 being offered at $280-285/t CFR, while, HMS 1&2 (80:20) stood at $270-275/t CFR. Few deals for 4a/4c bundles from UK origin were also reported this week at around $309/t CFR basis.
Major Karachi based steelmaker shared that “market seems to be over-inflated and will lose steam by the end of the week”.
Domestic Market:
Domestic steel market turned slow this week due to low demand for finished steel products in the market. slow down in construction sector due to heavy monsoon is going to have a seasonal impact on steel demand, which are already sub-par.
Also, limited labor force are available in the steel mill as upcoming Eid holidays till the end of next week.
Domestic steel prices more or less stable over last week. Deformed bar (Grade 60) offers by Punjab region mills standing at PKR 111-112,000/t ex plant and PKR 112,000/t for South region mills, ex plant inclusive of all taxes.
Local scrap prices (eq to Shredded) moved up by PKR 1000/t this week and stood at PKR 72,000/t inclusive of taxes.
Pakistan Domestic Steel Prices as on 21st July’20
Prices in PKR
Source: SteelMint Research
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