Imported scrap offers in Pakistan have remained majorly firm this week. High offers, currency depreciation and available inventories with the steelmakers kept importers little resistant from making fresh bookings.
As per recent conversations with market participants, SteelMint learned that imported scrap offers remained strong in this week in Pakistan. The buyers with inventories in hand, kept resisting current offer levels while steelmakers with low inventories remained looking for fresh scrap before prices increase further for imported scrap in Pakistan. On the other hand, sellers are now seeking for the further rise in prices resulted in very less trades reported in Pakistan this week.
Current offers for UK origin Shredded scrap in containers are assessed at USD 360/MT, CFR port Qasim, which are up by USD 5/MT on W-o-W basis. Offers for the same material grade were recorded at USD 355-360/MT, CFR last week.
Offers for Dubai origin HMS 1&2 assessed at USD 335/MT, CFR port Qasim which were heard last week at USD 330/MT, CFR. HMS 1 from Dubai offered at USD 340/MT this week.
Prices are expected to remain strong till mid of Jan’18, shared a market participant from a leading scrap trading firm.
“Pakistan based steel mills are not buying much imported scrap at the moment as the material is quite expensive and the majority of them have an inventory with them which they can use for about a month. Also, Pakistan Rupee has depreciated to 110.5 against USD which was 105.2 a month back”, shared a participant from Pakistan’s leading steel mill.
Few scrap importers were also heard working with re-rollable scrap which was offered at USD 415-420/MT, CFR from Hong Kong and Dubai.
The global imported scrap market has been witnessing firm buying sentiments and imported scrap prices moved up again on recent trades. The current price assessment for US origin HMS 1&2 (80:20) is now at USD 362.5/MT, CFR Turkey. In the recent deal concluded Canadian seller sold 13,500 Shredded and 16,500 MT Bonus to Turkish buyer at an average price of USD 370/MT CFR Turkey.
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