Pakistan’s imported scrap prices fell in recently concluded trade. Lower bids and a sharp decline in Chinese steel futures kept buying interest limited. Also, steel mills were not in a hurry to book cargoes owing to inventory lying with them, hence they were seen adopting a wait-and-watch approach.
- Recently, a deal was concluded for UK/Europe-origin shredded scrap for 3,000 t at $515/t, CFR Qasim, down by $10/t week-on-week (w-o-w), sources have confirmed to SteelMint. Another trade was heard to have been concluded at $513/t CFR, however, it was unconfirmed till the time of publishing this report.
- Prior to this, around 2,000 t of US-origin shredded was sold at $518-523/t towards the end of last week.
- Fresh offers for UAE-origin HMS 1 are being offered at $495 /t CFR Qasim.
“The market has been very quiet since last weekend. Yards are holding back from quoting fresh offers. Buyers are not actively bidding as they have sufficient pending deliveries of previous bookings,” a Pakistan-based scrap importer said.
Finished steel demand sees seasonal hike:
“Rebar offers have gone up to around PKR 140,000-142,000/t exw-Punjab but deals are happening at PKR 137,000 -138,000/t levels,” said a reliable source.
End-consumers have resumed activities this week. Builders have demanded a waiver of the regulatory duty and additional regulatory duty on imports of steel to bring stability as prices of steel bars are increasing drastically in the local market, as per media reports.
Demand for local scrap has increased, whereas availability remains less, which is boosting scrap prices. Currently, local scrap prices are being offered at PKR 95,000-98,000/t levels.
Outlook
Market participants expect prices to correct in the near term. However, a sharp correction seems unlikely considering tighter availability with yards.
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