Despite the continued decline in imported scrap offers, the number of deals in Pakistan have seen a slowdown, market players informed to SteelMint. Buyers remained quiet and are awaiting clear market directions.
Recent offers and deals
- In a recent deal concluded, around 3,000-5,000 t of shredded in containers have been booked at $510-515/t CFR Qasim. Fresh offers for UK-origin shredded are at $510-518/t CFR levels, down by $5-10/t w-o-w.
- A deal for around 1,000 t of HMS 1 from the UAE has been concluded at $475-480/t CFR Qasim levels.
“There have been hardly any significant deals for imported scrap since the last weekend. Bid-offer disparities have kept bookings on the lower side,” said a Pakistan-based market source.
Factors leading to slow market trend
- Cash flow issues: Currently, since it is the month-end, and mills have to settle their electricity bills, scrap purchases have been slow.
- Local end-user demand slow: Domestically, the end-users are waiting for prices to come down further. Additionally, due to the rainy season and the unchanged rebar G-60 prices, market sentiments have been a bit dull.
- PKR hits all-time low against dollar: The Pakistani rupee continued struggling against the US dollar in the currency exchange market. It hit at an all-time low of PKR 170.39 against the dollar, turning imports costlier.
Domestic steel market subdued: Following the global scrap price trend, Pakistan’s domestic market observed weak demand from last week. Market participants expect more correction in steel prices in the coming days. SteelMint’s assessment of local shredded scrap prices has declined further by PKR 3,500/t to PKR 108,500/t exy-Punjab.
SteelMint’s price assessment for G60 rebar in Pakistan’s Punjab region stands steady at PKR 172,000/t exw, unchanged w-o-w.
Pakistan domestic prices-
Outlook
Market players are awaiting clear trends amid pending deliveries of old tonnages before making fresh bookings, which may keep trade subdued.
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