Imported scrap offers to Pakistan have remained mostly stable this week, as global prices stood firm in recent deals over the week, SteelMint learned in recent conversations with industry participants. Further improvement in buying activity was witnessed amid stability, with steel mills looking to procure actively before any probable upturn in global prices. Domestic billet prices inched up while steel prices remain firm after sharp fall last week.
SteelMint’s assessment for containerized Shredded 211 scrap from UK/Europe stands at USD 260-262/MT, CFR Qasim, majorly stable against offers assessed towards end of last week. Many buyers have reportedly made multiple bookings of Shredded through containers over this week, to benefit from the current market situation.
Imported HMS trades have gone down further as the continued additional duty and other customs issues have kept it economically less viable. Many steel mills are running furnace with shredded, local HMS and bundles. Few offers of Dubai origin HMS 1 (super) currently stand at around USD 258-260/MT CFR Qasim, while HMS 1&2 of European origin was assessed at around USD 245/MT CFR.
Pakistani Rupee stands stable at around 156 levels against USD this week.
Local scrap prices up, domestic steel prices firm – Although finished steel demand is yet to pick up completely, stability in international scrap prices have supported the local market after sharp fall in steel prices witnessed last week, with some indications of slight hike in the coming days. Local scrap as well as Bala Billet prices rose by PKR 1000/MT ex-works, W-o-W, while it was reported that there is a shortage of local scrap in the domestic market.
In northern region, rebar average selling prices were assessed at around PKR 111,000-112,000/MT, ex-works (USD 708-714) meanwhile Southern (Karachi region) steel mills are offering rebar at around PKR 113-114,000/MT ex-works (USD 720-727). Local scrap eq to shredded currently stands at around PKR 63,000/MT amid tight supply, while Bala billet and CC Billet is being offered at PKR 84,000/MT and 89,000/MT respectively ex works.
| Particular (Average Selling Prices) | 23-Sept’19 | Last Assessment on 17-Sept’19 | Change |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 63,000 | 62,000 | 1000 |
| Bala (Local Billet) | 84000 | 83000 | 1000 |
| CC Billet (Grade 40) | 89,000 | 89,000 | 0 |
| CC Billet (Grade 60) | 91,000 | 91,000 | 0 |
| Deformed bar (G-60), Ex-Punjab/KPK | 111,000-112,000 | 111,000-112,000 | 0 |
| Deformed bar (G-60), Ex-Sindh (Karachi) | 112,000-113,000 | 113,000-114,000 | -1000 |
Source: SteelMint Research
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