Imported scrap prices to Pakistan, continued heading south. However, limited trades were reported at lower levels as most buyers continue waiting for the prices to come down further. Interestingly, prices have come down significantly by around $80 in last three weeks.
“Market is dull, UK origin shredded offers from traders are at $410-420/t CFR Qasim level. Just two-four regular customers are inquiring to have a check on prices, whereas yards are still not offering” shared a prominent trader to SteelMint.
“Market is slow and there is a talk from buyers’ that we are getting at $405 but sellers still have offers tight at around $415-420/t levels. Also, suppliers are holding offers as India has removed duty on imported scrap. Real buying and trade activity is very sparse” a major steelmaker has shared.
SteelMint’s assessment for the UK/EU origin now stands at $410/t CFR levels, decreasing significantly by around $30 against the beginning of last week.
Recent offers and deals-
- In a recently conculded deal , around 3,000 t on high seas for UK/EU origin shredded has been booked at $400-405/t CFR Qasim basis.
- Few more deals were concluded for around 2,000 t at $415-420/t CFR level for UK/EU origin shredded, towards the closing of the week.
- Dubai origin HMS 1&2 (80:20) is being quoted at $385-395/t CFR Qasim level.
Imported scrap prices to Turkey have dropped further by $10 towards the closing of last week, sources have confirmed to SteelMint. In recent trade, a USA based scrap recycler sold a bulk cargo to Turkish steelmaker. The cargo comprises of HMS 1&2 (80:20) at $405/t CFR basis.
Domestic rebar offers fall – Domestic rebar prices fell marginally compared with last week. Customers expect a further decline in rebar prices in the coming days as demand has also come down. According to SteelMint assessment, prices for G-60 rebar stands at PKR 129,000/t exw, down by PKR 2,000/t w-o-w.
Steel sector requests to reduce tax rate– The steel sector has requested the government to reduce the minimum tax rate from 1.5% to 0.25% for dealers and distributors, as per Pakistan’s media report. The minimum tax rates would encourage suppliers and traders to work legally which will ultimately contribute to tax revenue of the government.
Outlook– Market participants expecting imported scrap bookings in Pakistan to pick up in a week’s time, on increasing inquiries.
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