Pakistan-based steel mills increased their rebar offers by around PKR 4,000-5,000/tonne (t) ($25-32/t) owing to a hike in scrap prices. Offers from all leading mills are hovering in the range of PKR 149,000-150,500/t ex-Punjab levels. However, the workable prices stand at PKR 147,000-148,000/t exw. SteelMint’s assessment for G-60 rebar stands at PKR 147,000/t exw, up by PKR 4,000/t w-o-w.
The Pakistan Association of Large Steel Producers strongly rejected the erroneous impression being given in a section of the Press that the steel industry is selling rebar at extreme rates, a copy of the letter accessed by SteelMint shows. Despite massive increase in electricity tariffs and high cost of doing business costs, local steel mills are still providing materials at cost-effective prices to the construction sector, the letter said.
“The govt announced four hours of power cuts between 2-6 pm, and all industrial units are also shut due to some issues in a hydro-power station. These issues have kept steel prices supported,” said a Pakistan-based trader.
Active bookings on increased offers: Pakistan’s imported scrap market turned active with numerous deals struck last weekend. Around 20,000-25,000 t of shredded has been booked by Pakistan mills at $537-540/t CFR Qasim.
- Fresh offers for UK/EU-origin shredded are being quoted at $545-550/t CFR Qasim, up by $10/t against last week’s closing. However, bookings are yet to be reported at increased offers.
- UAE-origin HMS 1&2 (80:20) and PNS are being offered at $490-495/t CFR Qasim. Few deals were heard to have been concluded at this range. Moreover, buyers and steelmakers are more interested in booking HMS at present.
Domestic scrap prices on upswing: The local market in Pakistan was on the higher side this week. Local scrap prices increased by around PKR 1,160/t w-o-w to PKR 95,660/t ex-Punjab.
Outlook
Mills are expected to remain active in imported scrap purchases in the latter part of this week, after testing the sustenance levels of the current elevated offers.
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