Inquiries for imported scrap are increasing in the market following low scrap inventories and a marginal rise in local billet prices.
SteelMint learned in recent conversation with participants that imported scrap offers to Pakistan have maintained slow uptrend. However, activities remained slow on prevailing issues like liquidity crunch, surplus supply and low demand, hike in electricity tariffs in the local steel market.
SteelMint’s assessment for Shredded scrap inched up in the range USD 335-337/MT, CFR Qasim up USD 3-5/MT on W-o-W against USD 332-335/MT, CFR report last week. In recent deals confirmed, containerized Shredded scrap sold at around USD 335/MT from UK and Europe and buying interest stands in the range USD 333-335/MT, CFR. While asking rate from the recyclers in UK, Europe and USA is being quoted at around USD 335-340/MT, CFR.
Middle East origin HMS 1 prices showed a slight instability and continued hovering in the range USD 325-330/MT, CFR Qasim. While a few sellers continued quoting HMS 1 above USD 330/MT, CFR. Very limited offers were available following slow demand from South Asian buyers seeking more clarity on global levels and local fundamentals.
SteelMint’s assessment of HMS 1 from the UK and Europe remains in the range USD 315-320/MT, CFR Qasim and for HMS 1&2 (80:20) around USD 310-315/MT, CFR.
Local steel market awaits positive initiative from the Government – Local steel market in Pakistan observed no major development in terms of demand. However, commercial bala billet prices moved up in the local market by PKR 700-1000/MT against that of last week’s report following increased costing on the back of an increase in electricity tariffs in the near terms.
Gadani’s ship-breaking import tonnages increase in Feb’19, sentiments remain uncompetitive – As per ship breaking import tonnage data maintained with SteelMint, Pakistan observed 13,033 LDT LT of import in 3 ships beached for cutting operation in Feb’19 against just 1,276 LDT LT in Jan’19. However, Pakistan remained out of the competition with lowest prices being offered and lowest tonnages imported in the subcontinent ship breaking since past couple of months.
SteelMint’s local steel price assessment –
| Average Prices, Ex-work Punjab and Lahore, inclusive of taxes | |||
| Particular | 12-Mar’19 | Last assessment on 05-Mar’19 | Change |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 59,000 | 58,500-59,000 | 500 |
| Bala (Local Billet) | 75,000-75,500 | 74,300-74,500 | 700-1000 |
| CC Billet (Grade 40) | 81,000 | 80,000-80,500 | 500 |
| CC Billet (Grade 60) | 82,000 | 81,000-81,500 | 500 |
| Deformed bar (G-60) | 95,000-96,000 | 95,000-96,000 | 0 |
Source: SteelMint Research
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