In recent conversations with market participants, SteelMint learned that Pakistan steel market is observing serious liquidity issues reflecting sharp fall in local steel prices and pressuring scrap importers to adopt ‘Wait and Watch’ mode for few more days.
Imported scrap prices move down marginally in recent deals – Uncertainty about Pakistan Rupee against USD and softening scrap prices in international market kept buyers little hesitant from buying in large volumes in Pakistan. Sharply weakened local prices affected sentiments in the imported market substantially.
In the recent deals concluded, European origin Shredded 211 scrap heard to have sold at USD 355-356/MT levels for prompt delivery. Offers for HMS 1&2 from South Africa heard at around USD 347-350/MT, CFR.
However, offers for containerized Shredded scrap from yards in USA and UK remain in the range of USD 358-360/MT, CFR Qasim. HMS 1 from UAE assessed at around USD 343-345/MT, CFR Qasim.
According to reports, starting from August 13th, all of the tankers will once again be re-inspected before fresh gas free certificates are issued, cutting permissions & recycling activities commence and fresh negotiations on tonnage (wet or dry) subsequently resume. Ship cutting prices remained weak again this week at USD 400/LDT for general dry bulk cargo, at USD 425/LDT for containers and at USD 415/LDT for tankers on CNF Pakistan basis respectively.
Local steel prices tumble – As an impact of weak demand and low cash circulation in domestic market local billet, rebar and domestic scrap prices in Pakistan have come down by PKR 3000-5000/MT (USD 24-41) against last weeks’ report.
According to sources, average prices for local billet (Bala) stand at PKR 69,000/MT (USD 561) presently. Similarly for grade 60 CC billet prices gauged at PKR 80,000/MT (USD 650), ex-plant inclusive of taxes. Domestic scrap prices stand at PKR 51,000/MT (USD 415) levels now. While ship cutting plate prices assessed last at PKR 78,000/LDT.
Rebar prices in Punjab region are presently assessed at PKR 97,000-98,000/MT, ex-works and at PKR 100,000-101,000/MT levels ex-works in Sindh region. All these prices are inclusive of taxes.
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