Buyers of imported scrap in Pakistan continued booking fresh slots for Dec’21 shipments. While imported scrap offers remained mostly stable w-o-w, with increasing demand from end-users in the domestic market industry participants are looking to restock actively.
Recent deals and offers
- Around 5,000 t of UK-origin shredded scrap in containers has been booked at $560-565/t CFR Qasim. Offers remain firm at $560-565/t CFR.
- UAE-origin HMS 1, around 2,000 t, in containers has been sold at $527-530/t CFR Qasim.
“Prices have climbed to an all-time high. Mills in Pakistan had restocked imported scrap in sufficient volumes last week. Suppliers have been raising offers on the back of limited supplies and container unavailability. However, despite increasing offers, a few transactions happened, which shows that prices may remain robust”, highlighted a Pakistani scrap trader.
- PKR hits 175.1 against US dollar: The Pakistani rupee still continues sliding, a currency depreciation that has been continuing for the past five months. The rupee touched a new all-time low of PKR 175.13 against the US dollar in the currency exchange market.
Domestic scrap prices in Pakistan have also increased significantly by PKR 6,000/t ($34) to PKR 118,000-120,000/t exy-Punjab for shredded-equivalent scrap.
- Steel mills lift rebar offers on higher production costs: Rebar offers have increased on the back of high imported scrap prices, depreciation in the country’s currency, and the hike in fuel and electricity prices. Major steel mills in Pakistan lifted their rebar offers by PKR 5,000/t ($29) last week. Revised offers for 10-12 mm rebar stand at PKR 186,500-187,500/t exw-Punjab, including taxes. SteelMint’s assessment for G-60 rebar stands at PKR 184,600/t exw-Punjab including taxes, up PKR 7,000/t, w-o-w.
Outlook: Market sources expect prices to remain firm in the short term given restocking demand ahead of the winter holidays.
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