Pakistan: Imported scrap prices climb to over 2-month high on active trade

With the recent Turkish deals concluded at improved offers as well as active buying interest seen from Pakistan, imported scrap prices have climbed to over two-month high, as per records maintained with SteelMint.

Recent deals and offers

• Around 3,000-4,000 t of UK/EU-origin shredded have been booked at $540/t CFR Qasim basis. A few small quantity deals were also heard at $543-544/t CFR levels.
• Fresh offers are at $540-545/t CFR , moving up significantly by $10-15/t w-o-w.
• A decent quantity of HMS1 from the UAE has been booked at $520/t CFR Qasim basis. However, fresh offers are heard around $525-530/t, CFR levels.

Imported scrap prices are likely to remain on the higher side, SteelMint learnt from reliable sources. Nevertheless, market players will likely remain active in the coming days, due to increasing demand for the peak season.

On the other hand, increasing offers are not feasible for many steel producers.Hence, buyers are shifting to locally sourced scrap.

Pakistan mills lifted rebar offers by PKR 3,000/t: Major steel mills in Pakistan, such as Mughal, Agha, Naveena and Faizan Steel, have lifted rebar offers by PKR 3,000/t towards the close of last week, SteelMint learnt from sources. Revised offers for G60 12mm rebar stand at PKR 179,500-180,500/t exw ($1,051-1,056) (including taxes). Offers have risen on higher imported scrap prices and currency depreciation.

The domestic steel market has become stronger due to improved buying activity. It is further expected that prices may move upward as finished steel prices are on the higher side due to which construction players are facing a disadvantage.

SteelMint’s assessment of local shredded scrap prices has increased further by PKR 3,500/t to PKR 112,500/t exy-Punjab. SteelMint’s price assessment for G60 rebar in Pakistan’s Punjab region stands steady at PKR 177,000/t exw, up by PRK 3,500/t w-o-w.

Outlook
The market is likely to see the next round of imported scrap bookings at increased offers considering the active demand and limited offers etc.