Imported scrap trade into Pakistan has remained slow throughout the Ramadan month so far. Buyers remained less active for fresh bookings. Although trade was subdued, enough offers were available in the market. Meanwhile, global sentiments were muted too.
“Mills should resume bookings after Eid holidays as they have to restock their inventory to fulfill the demand-supply gap after the holidays,” reminded a prominent scrap trader.
Around 2,000 tonnes of US-origin shredded in containers have been booked at $615/t CFR Qasim recently. Fresh offers for UK-origin shredded scrap are being quoted at $610-620/t CFR levels. Interestingly, offers are hovering at over one-month lows.
The market situation is expected to improve after the Eid holidays, SteelMint understands.
On the other hand, mills continued to book domestic scrap considering the immediate availability and cost competitiveness. High-quality domestic scrap is available at PKR 120,000-125,000/t exy ($646-675/t) Punjab levels.
Market overview
- Turkey’s imported scrap offers at one month-low: Turkish steelmakers were absent from the scrap import market with no fresh cargo booking seen at the beginning of the week. However, a few transactions were recorded towards the weekend. A US-based cargo of shredded and bonus was booked at $596/t CFR by an Aegean steel mill. In another deal, a Mediterranean-based mill booked Benelux-origin cargo of HMS (75:25) at $571/t CFR and a bonus at $596/t CFR. Prices were hovering at one-month low levels as per data maintained with SteelMint.
- PKR depreciates against $: The national currency, the Pakistani rupee (PKR), has fallen further against the dollar. Currently, PKR is trading at 185.77 against 183.10 recorded a week ago. Finance Minister Miftah Ismail returned to Pakistan on Monday after negotiating a deal with the International Monetary Fund (IMF) that may give some space to the new government to make a “people-friendly” budget in June.
- Ferrous scrap imports fall 9% m-o-m in Mar: South Asia’s prominent ferrous scrap importer, Pakistan, recorded imports at 0.32 mnt in March 2022 as against 0.35 mnt a month ago, as per SteelMint data. Imports fell 9% m-o-m for seaborne bookings in March. However, on a yearly basis, scrap imports remained largely stable compared with 0.33 mnt in March 2021.
- Rebar offers under pressure: Domestic rebar witnessed a seasonal slowdown. However, end-users booked their deliveries at a discounted price. Meanwhile, limited working hours and unavailability of workers remain the major reason during Ramadan. Government-funded projects are on hold due to funding issues. Pakistan’s leading steel mills kept rebar prices unchanged officially for another week for G-60 (10-12mm) grade. However, tradable prices are at PKR 200,000-205,000/t exw ($1,076-1,103/t). The market will improve after the Eid holidays.
Pakistan domestic prices
Outlook: Trading activities are likely to resume after the Eid holidays from 29 April onwards till 10 May.
Meanwhile, buyers are booking domestic scrap along with a few cargoes of imported to fulfill urgent requirements.
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