Imported scrap trades in Pakistan have remained active with prices edging close to two-month high levels. Low scrap collection rate amid the 2nd wave of COVID-19 pandemic and restocking ahead winters are two key reasons which have kept prices supported. Major steel mills are actively booking their slots for Jan’21 arrivals, SteelMint learned from market participants.
“Pakistan will keep continuing to pay premiums for shredded scrap due to scrap shortage of winter bookings and robust steel outlook” shared by a prominent steelmaker in Pakistan.
SteelMint’s assessment for imported Shredded 211 scrap in containers from UK/Europe stands at $323/t CFR Qasim, up by $5 as compared to last week.
Recent trades and offers-
- In a recent deal, 1,000 t of UK origin shredded has been booked in containers at $323/t CFR Qasim basis
- 1,500 t of UK origin shredded was traded at $323/t CFR Qasim
- Around 1,000 t of UK origin shredded was sold in another deal at around $321/t CFR basis
- Few offers for USA shredded have been reported at $322/t CFR Qasim level
HMS 1&2 (80:20) in containers from UAE and UK origin is being offered at $305/t CFR level, up by $5 w-o-w. - UAE origin PNS is being offered at around $320-325/t CFR Qasim
Domestic steel market overview: Pakistan’s domestic steel market is still depressed, yet few major steel mills manage to achieve the highest monthly record in its deformed steel sales as prices have remained stable for last one month, highlighted by a reliable market source. However, market insiders expect some improvement in the next coming two-three weeks. Local scrap and billet prices have slightly up by PKR 1000/t as compared to last week.
Also, Pakistani Rupee has appreciated in a week’s time, which may help to increase volumes of a quality deformed steel segment. Currently, $1 is trading equal to PKR 161.09 as compared to PKR 162.21 five days ago.
Pakistan domestic steel prices as on 26th Oct’20
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