Inventories in Pakistan for ferrous scrap are about to dry up soon. Rising global scrap prices has pushed up imported scrap offers to USD 350/MT level for Shredded Scrap amid limited availability.
As per recent conversations with market participants, SteelMint learned that imported scrap offers kept climbing up again in this week in Pakistan. At the same time, this week local scrap prices also hiked in Pakistan amid lowering inventories. This situation may lead Pakistan scrap buyers to book imported scrap anytime soon.
Current offers for UK origin Shredded scrap in containers are assessed at around USD 350/MT, CFR Port Qasim, up by USD 5-10/MT on W-o-W basis. Offers for the same material grade were recorded at USD 340-345/MT, CFR last week.
Offers for Dubai origin HMS 1&2 have increased to USD 325-330/MT, CFR Port Qasim which were heard last week at USD 320/MT, CFR however very less offers heard for HMS scrap in Pakistan again in this week.
“Scrap market in Pakistan is active for buying as the inventories are drying up very fast, few buyers with no inventories in hand are constantly looking for fresh scrap but the unavailability of materials from sellers end lifted offers further. Few deals for Shredded scrap were reported at around USD 345/MT, CFR and buyers are suppose to buy Shredded scrap at USD 350/MT levels as they had no other option in hand. But the majority of them are still preferring to wait and watch”, shared a market participant from a leading scrap trading firm.
The global imported scrap market has witnessed strong buying sentiments despite the hike in imported scrap prices. In Turkey offers grew by about USD 17-20/MT from a week before and assessment for US origin HMS 1&2 (80:20) is now at USD 343/MT, CFR Turkey and recently several deals confirmed at these levels for January shipments in Turkey.
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