Pakistan: Imported scrap offers inch up slightly amid decent trades

Imported scrap offers to Pakistan moved up gradually this week, following the global scrap price uptrend. While average bookings were reported as mills continued to restock for July shipments amid anticipation of prices shooting up in the coming few weeks.

SteelMint’s assessment for Shredded 211 scrap from UK/Europe stood at USD 292/MT CFR Qasim, up by USD 2-4/MT against last week’s report, few deals were reported recently in the range of USD 290-292/MT. Most fresh offers recorded at USD 292-294/MT, while some offers from the premium yard were up to USD 295/MT, depending on origin.

On the other hand, Newzealand and Australian origin suppliers have quoted at around USD 287/MT, while buyers are bidding at USD 285/MT level for Newzealand based shredded scrap.

Mostly HMS offers were absent this week as high inquiries were noted for shredded scrap instead of HMS scrap. However, few offers for HMS 1 being offered at USD 275-280/MT CFR.

The domestic scrap prices slightly moved up this week as compared to last week’s report, as steelmakers are facing a shortage of scrap supply. However, finished steel prices stable due to demand-supply balance.

Meanwhile, the government has sealed most of the retail outlets in the steel market, amid the country has failed to follow the SOP (Standard Operating Procedure) guidelines as a precaution against Coronavirus in the initial stage of pandemic. Pakistani steel industry may again struggle to sustain in the market, as the government likely to announce some changes in the regular structure on scrap import tariff, in the upcoming Federal Budget on 12th June’20.