With very few deals concluded in the last two-three days, Pakistan’s imported scrap market is yet to get its full momentum after holidays with steelmakers and buyers waiting for clear market direction.
SteelMint’s assessment for imported shredded 211 scrap in containers from UK/Europe is slightly up by $4 as compared to last week’s opening and currently stands at $475/t CFR Qasim.
UK has announced a fresh national lockdown on Monday and this has prompted a range of reactions from across the world. The lockdown is expected to last till mid-February. China’s scrap import resumption has kept the buyers on wait and watch mood, SteelMint learnt from its channelled sources.
“There has been no business in past five days in Pakistan, customers were quiet on a long weekend. UK has gone on a lockdown again which means scrap collection will be low again and China’s resumption of scrap imports-may boost prices further” shared a major trader in Pakistan.
Furthermore, after resumption of imported scrap, China’s high-level bid price for scrap has kept the market hot.
“China is already paying high price, though Japan is close to it, while other South Asian countries are even paying high freight charges for the same grade of scrap, so the prices would surely go up once China starts its activity at full pace” shared a Pakistan based trader.
On the other hand, Pakistani buyers are still optimistic for price correction as there is slow buying at high-level offers. There are some possibilities that prices may go up further due to another lockdown in UK, however, the prices are likely to come down as there is no acceptance from buyers’ side at these levels, highlighted a Karachi-based scrap buyer.
“Currently, buyers are cautious at the moment and they are not keen on booking new slots. I am not going to buy for next 10 days” he added.
Recent offers and deals-
- Offers for UK /EU origin shredded are reported in a wide range of $475-485/t CFR Qasim level. There are possibilities that prices may go up further.
- Confirmed trades were reported at $460-470/t CFR Qasim for UK origin shredded.
- While in another deal a decent quantity of Dubai origin PNS has been sold at $455/t CFR levels.
Pakistan’s domestic rebar market overview– Earlier during the last week, steel mills have increased their rebar prices up to PKR 145,000/t levels. Due to slow buying trends on year-end holidays prices have slightly come down, however, according to SteelMint’s assessment the rebar prices are still up. Following the hike of imported scrap prices, domestic prices have also increased by PKR 550/t on tight availability of scrap.
Pakistan domestic steel prices
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