Pakistan’s imported scrap market has noticed a further hike in prices this week on container shortage and hike in freight rates. Imported scrap prices have climbed to nearly 1.5 years high, as per data maintained with SteelMint.
- SteelMint’s assessment for imported shredded 211 scrap in containers from UK/Europe stands at $338/t CFR Qasim, up by $8 as compared to last week.
- Shredded from UK/EU origin offers stand at $335-340/t level, increasing by around $10 w-o-w.
- UAE origin HMS 1&2 (80:20) is being offered at $325/t level, up by $10 w-o-w.
- Major mills have concluded deals for shredded in containers at $335-338/t levels.
Comments from industry sources-
“Shredded trades in containers have been concluded at $337/t CFR Port Qasim recently with yard owners eyeing for $340/t CFR levels now”, highlighted a Pakistan based scrap trader.
“Imported scrap offers have shoot up sharply due to shortage of material at yards in UK & Europe impacting overall scrap supply chain. Imported scrap market in Pakistan has been very volatile in last couple of weeks. Few buyers have turned less active for fresh bookings. Domestic steel prices have not increased in line with hike in scrap offers”, reported by a prominent trader.
Domestic steel market overview-
Domestic market position remained more or less same for last couple of weeks. Finished steel demand is weak in Punjab and Karachi region due to Pakistan’s government has imposed restrictions to control over smog of furnaces and those mills who have not used effective air pollution control systems will have to pay penalties.
Offers of deformed bars from major mills in Pakistan is around PKR 113,000/t ex-Punjab.
Pakistan domestic steel prices as on 9th Nov’20
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