Pakistan: Imported scrap prices drop by $5 w-o-w in recent trades

Imported scrap prices in Pakistan have come down following correction in Turkish imported scrap prices. Pakistan-based steel mills are seeking govt intervention in order to boost mega construction projects which are still running at a slower pace, which in turn resulted in lower bids for imported scrap.

SteelMint’s assessment for imported Shredded 211 scrap in containers from UK/Europe stands at $307/t CFR Qasim, decreasing by $5 as compared to last week.

Recent trades and offers-

• Around 2000 t of European origin shredded in containers have been booked yesterday at around $305/t CFR basis.
• Shredded (in containers) currently is being offered in the range of $305-310/t CFR Qasim from UK/Europe based suppliers.
• UAE origin HMS 1&2 (80:20) in containers is currently traded at $295/t CFR Qasim, down by $5 w-o-w.

“Finished steel prices are yet to pick up but activity seems to be finally gaining great traction” shared by a Pakistan-based major steelmaker.

Pakistan’s domestic steel market overview:  The domestic steel market situation remains depressed as compared to last week on low finished steel demand in the market and tough competition among the major market players. Surplus availability of steel materials in the market and also few new G60 grade steel players are offering lower rates to enter into the market. Thus few bigger mills reduced their rates to place the barriers for new entrants, reported by a source. This has resulted in a correction in Pakistan’s domestic rebar offers.

Pakistan domestic steel prices as on 6th Oct’20

According to media reports, Pakistan’s PM Imran Khan met steel manufacturers by the closing of the last week, assuring support, development, and revival of the country’s steel sector which is the backbone of the national economy. The few key topics taken up during discussion were –

• The daunting cash flow challenges faced by the industry.
• To take immediate measures for the revival of steel-related businesses.
• To review the tariff structure.
• To review and stop the production & sale of sub-standard steel.