Imported scrap market in Pakistan witnessed limited trades as mills have slowed down purchases amid rains and ahead elections.
In recent conversations with market participants, SteelMint learned that towards closing of the last week, Pakistan based importers have concluded few deals at corrected prices. Following a sharp decline in buying interest in the global market, few suppliers had come into pressure to offer materials at low prices and 3-4 bookings confirmed in the market at edge down prices.
Towards the closing of last week, Shredded 211 was booked from UK suppliers at USD 377-378/MT by a leading steel mill in Pakistan while few limited quantity trades have reported at around USD 374-377/MT from Europe origin CFR Qasim basis.
However, in the latest update received Shredded has been booked in recent deals in minor volumes at rebounded prices at USD 380-382/MT, CFR. Suppliers have turned hesitant to offer more scrap at low prices and Shredded offers rebound in the range of USD 380-384/MT, CFR Qasim.
Few deals for South African HMS 1 scrap concluded at USD 367-370/MT, CFR Qasim while few deals for containerized HMS 1 from Dubai concluded in the range of USD 362-365/MT, CFR Qasim. These prices fell down by USD 5-8/MT on W-o-W basis against last report of USD 367-370/MT, CFR last week.
Price assessment for HMS 1&2 (80:20) from UK and Europe origin stands in the range of USD 355-360/MT, CFR.
“Suppliers are not offering much quantities at corrected prices as everyone is waiting for clarity on global market. Few steel mills are having considerable inventories in hand, lot of scrap material is to arrive and it hardly seems that there is any shortage of scrap in Pakistan” shared a local source.
National elections are scheduled on 25th July, many of the participants are highly involved in its activities. Before 1 week of elections, activities are further expected to slow down in domestic market on political campaigns.
Local steel prices fall over rains and upcoming elections- Local steel prices have pushed downward as a temporary attempt from few steelmakers in order to check if the strong demand still persists or not in the market.
After climbing upward by PKR 1000-2000/MT in last weeks’ time, prices have moved downward by PKR 1000/MT again. Ongoing heavy monsoon, high fuel prices, hiked electricity tariffs and upcoming elections remained major concerns in the domestic market of Pakistan.
Average prices for local billet (Bala) assessed at around PKR 79,000/MT (USD 649) levels. Similarly, grade 60 CC billet prices assessed at around PKR 85,000/MT (USD 698) ex-plant inclusive of taxes. Domestic scrap prices were assessed at PKR 59,000/MT (USD 485) levels.
Rebar prices in Punjab region assessed at PKR 99,000-100,000/MT (USD 813-821), ex-works levels stable on weekly premises inclusive of local taxes. Local ship cutting plate prices assessed at PKR 75,000-76,000/LDT (USD 616-624).
Ship cutting market at Gadani region remained awaiting for permission from environmental authorities and govt officials to start cutting operation of around 10 VLCC beached since reopening of the tankers’ market. Sentiments remain declining as no fresh sale was reported in the market. Ship cutting prices assessed stable at USD 410/LDT for general dry bulk cargo; at USD 440/LDT for containers and USD 430/LDT for tankers on CNF Pakistan basis respectively.
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