Pakistan: Domestic steel prices rise as imported scrap offers climb to over 1-year high

After witnessing subdued finished steel demand in the past few weeks, Pakistan’s domestic steel prices have shown a rebound. Tighter availability resulted in hike in imported scrap offers. Active restocking of scrap supported the price hike.

Interestingly, imported scrap offers have increased to over one-year high as similar levels were seen in Jul’19. SteelMint’s assessment for imported shredded 211 scrap in containers from UK/Europe stands at $327/t CFR Qasim, up by $5 as compared to last week. Few traders indicated deals to have concluded at around similar price levels.

Recent trades and offers-

• 5,000 t of Europe origin shredded has been sold recently in the range of $323-324/t CFR Qasim basis
• 2,000 t of UK origin shredded has been booked in containers at $325/t CFR Qasim basis
• 1,000 t of UK origin shredded was sold at $325/t CFR Qasim
• Fresh offers are being reported at around $325-330/t CFR level, up by $5-8 w-o-w, while limited deals have been reported at this level
• HMS 1&2 (80:20) in containers is being offered at $315/t CFR level, up by $10 w-o-w

Domestic steel prices increase – Market sentiments in Pakistan’s domestic steel market have turned optimistic with mills raising offers for deformed bar. SteelMint’s assessment for Bala billet and deformed bar increased by PKR 1,000-2,000/t w-o-w.

Pakistan domestic steel prices as on 2nd Nov’20

Source: SteelMint Research

*Correction: Deformed bar prices were incorrectly mentioned for the last week which has been corrected.

PSX holds Gong ceremony to mark the listing of Agha Steel: Pakistan Stock Exchange (PSX) held a gong ceremony yesterday (2nd Nov), upon listing of Agha Steel Industries Limited (ASIL) at the stock exchange. This is the third listing of a company on the PSX for the fiscal year 2020-21. “This IPO will help us materialize our expansion plans and bring to Pakistan, Asia’s First Endless Steel Plant with DRB Technology,” said the CEO of Agha Steel, Mr. Hussain Agha. The company is expanding its steel bar production capacity from 0.25 mn t pa to 0.65 mn t pa.