Pakistan: Imported scrap trade likely to pick up on positive market sentiments

Pakistan’s imported scrap prices moved up further in a recent deal concluded this week. Domestic market sentiments also turned positive and easing weather conditions are likely to support scrap import bookings. Additionally, recent Turkish deals encouraged suppliers to raise offers.

SteelMint’s assessment of UK/Europe-origin shredded scrap import prices stands at $550-555/t CFR, a slight increase of $5-10/t on a w-o-w basis.

Recent deals and offers

• In a recent deal, around 2,000 tonnes of UK-origin shredded have been booked at $550/t CFR Qasim basis.
• Around 6,000 t of UK/EU-origin shredded scrap in containers was booked at $545-550/t CFR Qasim last weekend.
• UAE-origin HMS 1 is being offered at $525/t CFR Qasim.

Market drivers

• Imported scrap prices rise in recent Turkish deals: Turkish deep-sea ferrous scrap import prices rose sharply, as fresh cargoes from Venezuela and Russia were booked by Turkish mills, sources informed SteelMint. A Russia-origin cargo, comprising 18,000 t of HMS 1/2 (95:5), was booked at $493/t CFR Turkey. A Venezuela-origin cargo was booked by a Mediterranean mill, with HMS 1/2 (80:20) fetching a price of $483/mt CFR.
• PKR range-bound against dollar: The Pakistani rupee remained range-bound against the dollar for the second straight week. Currently, the Pakistani rupee is trading at 176.4 levels. The main reason behind the recovery of the rupee against the dollar was a passage of the State Bank of Pakistan (Amendment) Bill 2021 from the Senate last week.
• Rebar prices expect an uptick: The imported scrap market in Pakistan remained quiet for yet another week after mills pulled down rebar offers sharply on subdued demand. “But is it is expected that prices will rise in the coming days due to clear weather from last week and cold weather gradually warming,” said a market source. Domestic G-60 rebar is now available at PKR 186,000-187,000/t exw- in Punjab ($1,059-1,065/t), including taxes. However, deals are yet to pick up.
• Local scrap prices firm: Local scrap prices remained stable this week, after a sharp drop last week. Prices for high-grade scrap (equivalent to shredded) stand at PKR 120,500/t levels ($686/t) exy-Punjab, unchanged w-o-w.

Pakistan domestic prices