Imported scrap trade into Pakistan continued to remain active. The shortage of domestic scrap, and hike in ship-breaking scrap prices provided support to imported scrap offers. The local scrap price assessment of SteelMint increased further by PKR 1,000/tonne ($6/t) w-o-w in recent deals.
Confirmed deals and offers:
- Around 3,000-4,000 tonnes (t) of UK/Europe-origin shredded scrap in containers have been booked at $540/t, CFR Qasim levels, in the last couple of days, sources confirmed to SteelMint. Prices have increased by $20-22/t w-o-w.
- Fresh offers from the UK yards for imported shredded are being quoted at around $545-550/t CFR Qasim, up over $25/t w-o-w.
- HMS from the UAE is being offered at $510-515/t CFR levels. However, limited trade was heard at these levels.
The buyers and steel mills are proactively booking imported scrap despite low margins in finished steel sales.
“Finished steel trading is yet to pick up as there are concerns from builders over a sharp hike in local rebar prices. Also, in the FY’22 budget announced last week, no change in duty structure was made pertaining to imported scrap. However, for HRC imports, certain benefits were announced ,” said a market source.
Domestic steel market yet to pick up: Domestic steel grade-60 prices inched up slightly. Currently, rebar prices are being offered at PKR 144,000-145,000/t exw-Punjab but demand is subdued. However, workable prices are still recorded at PKR 140,000-142,000/t levels, SteelMint noted. Local scrap offers are being quoted at PKR 95,000/t exw-Punjab.
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