Pakistan: Imported scrap offers rise tracking global price gains

Imported scrap offers in Pakistan inched up this week, following a global price hike in concluded trades recently. Turkey’s imported scrap prices have increased by $5-10/t in the recent deals. Sharp hike in domestic scrap prices in Pakistan amid tighter material availability is likely to keep buying inquiries firm in Pakistan’s imported scrap market.

• SteelMint’s assessment for UK/EU origin containerised shredded stands at $442/t CFR Qasim levels, slightly up by $5 w-o-w. Fresh offers are even being quoted at $435-445/t CFR Qasim basis.
• Buyers’ bid price levels have increased slightly w-o-w to $435/t CFR levels.
• Fresh offers for Dubai origin HMS1 are being quoted at $420-425/t CFR Qasim levels.

“Significant trades at increased offers are yet to be concluded. As distressed cargo is now largely over so yards are increasing offers. PKR has appreciated against $, which may support scrap imports further. Currently 1 $ = 152.66 PKR” shared a Pakistan-based scrap trader.

Few mills are covered with scrap bookings for April and few till early May. However, due to sharp fluctuations in scrap offers, mills have lowered their scrap inventory period to 50 days against previous inventory holding period of 70to 80 days.

Domestic rebar prices expected to increase: Domestic steel market prices are more-or-less same as against last week. Weak demand was observed due to Government restrictions as Covid crisis re-emerged in major cities.

Rebar prices have to increase but due to soft underlying demand seems to be under pressure, however, now that billet prices have shot up in North, we can foresee prices shooting up within a week, highlighted a prominent market insider. According to SteelMint assessment, prices for G-60 rebar in Punjab region were stable w-o-w and were at PKR 129,500/t exw, up by PKR 500 w-o-w.

Outlook: Market insiders believe that prices are yet to pick up as Ramadan holidays are coming up in the next two weeks. Meanwhile, domestic scrap buyers are thinking to go for imported scrap as local prices are also increasing.