Pakistan: Imported scrap prices rise; mills await recovery in steel market

Pakistan’s imported scrap trades have improved gradually, despite a hike in offers by $10 against the beginning of last week. However, finished steel demand is yet to recover and mills are eyeing price recovery in domestic market. SteelMint’s assessment for Shredded 211 scrap in containers from UK/Europe stands at $322/t CFR Qasim, up by $4 against last week’s opening.

“It looks like customers are left with no option other than accepting higher prices as sellers are not in a position to offers much lower” shared a Pakistan based scrap trader.

Recent trades and offers 

• Scrap suppliers are offering $325-330/t CFR level for shredded in containers for Uk/European origin, up by $5-10 w-o-w.
• Buyers’ price idea stands in the range of $322-325/t and few deals have been concluded at $322/t CFR level.
• HMS 1&2 (80:20) is being traded at $300-305/t CFR levels in containers, while buyers bid price stands at around $295/t.
• New-Zealand origin PNS and LMS are being offered at around $330/t and $275/t CFR level, respectively.
• And, LMS from the Caribbean is being sold at $262-263/t level.

 “Not much scrap trades have been reported recently, as local mills are still waiting for local prices to increase before re-entering properly into market” shared a Pakistan steel manufacturer.

PSM (Pakistan Steel Mills) Corporation, which is located in the Karachi region is going to be privatised soon, as per reports. In the second half of last week, the Privatisation Commission Board on Thursday approved the transaction structure for Pakistan Steel Mills. The PC Board approved the transaction structure for the revival of PSM (Pakistan Steel Mills) Corporation, which has not been operational since June 2015.

Pakistan’s domestic steel market overview –  Domestic steel market has observed weak demand during the last week due to heavy rainfall all over Pakistan and Muharram month. However, few major steelmakers have decreased their rates to capture maximum share in market, as demand has increased.

Pakistan domestic steel prices as on 8th Sept’20