Pakistan: Imported scrap trades slow down as buyers turn cautious

Imported scrap prices in Pakistan remained range-bound this week on limited trading activities. Major mills concluded few deals, but smaller mills kept themselves away from booking imported scrap actively. Market insiders indicated that there are limited buyers available in the market at the current market price.

SteelMint’s assessment for the UK/EU origin containerised shredded stands still at $468/t CFR levels, stable w-o-w.

“Nearly 5,000 t of UK/EU origin shredded have been booked at $462-465/t CFR Qasim basis till yesterday. Few suppliers are quoting fresh offers for shredded at $470-475/t CFR levels. Buyers turned cautious and small mills are bidding at $460/t CFR levels” highlighted a prominent Pakistan-based scrap trader.

• Imported scrap offers for shredded have remained largely stable on weekly basis at $465-470/t CFR Qasim basis.
• Fresh offers for Dubai origin HMS1 are being cited at $440-445/t CFR Qasim level.

“Market participants are awaiting the next round of Turkey’s imported scrap deals to get a clearer idea of the market”, shared another trader.

Domestic rebar offers maintain upward momentum: Domestic steel prices maintained an upward momentum on the back of increased imported scrap prices. SteelMint estimated prices have moved up further by PKR 2,000-3,000/t basis on a weekly basis.

According to SteelMint assessment, prices for G-60 rebar stand at PKR 130,000/t exw, up by PKR 3,000/t w-o-w. Domestic scrap and semi-finished prices too have increased significantly by PKR 4,000-5,000/t levels.

Domestic Market highlights-

• Agha Steel announces Jul-Dec FY’21 outcome: Agha Steel Industries announced its financial results for the half-year ended on 31st Dec’20. The company revealed profit after tax (PAT) of PKR 1,057 million while gross sales for the six months were at PKR 12,026 million, according to media reports.
• Govt. to amend procedure of clearance of imported goods: The recent ruling by govt of Pakistan ensures safe and secure transportation of imported raw material located in FATA/PATA. This is likely to stop tax evasion and dumping of under-priced material in the market which is evident, SteelMint understands.

Outlook: Imported scrap buyers are still less active. Market insiders expect an increase in rebar prices this week, however, consumption from end-users is still on the lower side.