Pakistan: Following global scrap price hike, finished steel prices rise further

• Domestic rebar prices have moved up by PKR 8,000 ($50) this week
• Imported scrap prices to Pakistan have soared by $30 this week
• Pakistani buyers are apprehensive of China’s scrap imports which might further push up prices

Pakistan’s domestic rebar prices have moved up by over PKR 8,000 further this week, driven by a global scrap price uptrend. Currently, rebar (deformed-60) prices are being quoted at PKR 128,000-130,000/t exw level by major players in the market, while steel mills expect prices may reach up to PKR 145,000/t level in the next few weeks. With the recent hike in imported scrap prices the gap between rebar and scrap prices are widening, SteelMint learnt from its sources.

“We have closed our rebar sales for today and will open new rates tomorrow” a major steelmaker shared with SteelMint.

“Mills have raised the rebar prices, and they have managed to pass the cost, both first and second tier mills are booking actively as good number of billet sales have seen recently” shared a Pakistan based trader.

Imported scrap offers to Pakistan have soared by $30 this week, with limited trades reported at the improved level of offers. SteelMint’s assessment for imported shredded 211 scrap in containers from UK/Europe stands at $471/t CFR Qasim, moving up considerably by $25/t compared to the beginning of last week.

Towards the closing of the year, Pakistani buyers are also apprehensive of China’s scrap imports, coupled with tight availability of containers and scrap shortage. There is massive demand for imported scrap in China, while supply remains low, highlighted a trade source.

“If China starts imports in bulk a small market like Pakistan will be in trouble in terms of price” he added.

“Punjab mills are shutting down now due to low or negligible scrap availability” shared a prominent steel maker.

Recent offers and deals-

• Fresh offers for UK /EU origin shredded are reported in a wide range of $465-480/t CFR Qasim level. While few suppliers are even quoting $500/t level from premium yards.
• Confirmed trades have been concluded in small slots of UK/EU origin shredded at $464-467/t CFR Qasim.

Domestic scrap prices rise on shortage constraint – Domestic scrap price up to around PKR 10,000/t on a weekly basis. Currently, scrap prices stand at PKR 85,750/t level on the limited availability of scrap.

Pakistan domestic steel prices as on 28th Dec’20