- Pre-Ramadan restocking under way
- Middle East prices to Pakistan stable
Imported ferrous scrap offers remained range-bound w-o-w, with restocking continuing at a slower pace. Shredded scrap is currently at $385/t CFR Qasim, while offers briefly touched $390/t before buyers pulled back, opting to reassess sales before making further purchases. BigMint assessed European/UK-origin shredded at $385/t CFR Qasim, down by $1/t.
Rebar sales have improved slightly, but the margin remains thin, raising concerns among producers.
Middle East scrap prices to Pakistan remained stable w-o-w. Pre-Ramadan buying is underway and may conclude in the next two weeks.
Meanwhile, commercial Bala (billet) and other finished products continue to struggle, with selling prices hovering near production costs.
Market commentaries
As per a UK-based scrap supplier, transactions for Europe shredded are being done at $383-385/t, with some sales reaching $390/t. However, the market is slow, and Pakistani mills are hesitant to be the only ones paying high for containers. Currently, no other import markets are showing significant activity. Freights from the UK to Nhava Sheva and Port Qasim are at around $51/t, with UK shredded priced at GBP 262-265/t.
As per a trading house owner, the market remains extremely quiet this week, with no takers for scrap. Liquidity is weak, and buyers are staying on the sidelines. With overall demand sluggish and Ramadan approaching, no one wants to take on additional liabilities at this stage.
In Pakistan’s domestic market, scrap offers stand at PKR 148,000/t ($530/t), with bids at PKR 143,000/t ($510/t). Billet is being offered at PKR 212,000/t ($760/t) against bids of PKR 206,000/t ($740/t), while rebar offers are at PKR 242,000/t ($870) with bids at PKR 235,000/t ($840/t). In the imported scrap market, shredded is being offered at $386-388/t, though buyer interest remains lower at $382-384/t.
As per a Lahore-based steel mill, the market remains slow, with HMS Dubai offers at $365/t and Dubai shredded at $400/t. Local HMS is at around PKR 150,000/t ($540/t) ex-yard, while UK/Europe shredded is at $385-390/t. Rebar sales are sluggish due to delayed government payments and cash flow issues. It heard from the market that Mughal has unofficially revised local rebar prices by PKR 3,000-4,000/t to PKR 232,000-233,000/t ($830-835/t) ex-factory on a cash basis.
Outlook
Market insiders foresee an improved construction sector, although end-user demand is expected to remain slow. However, ongoing restocking amid domestic shortages may drive offers higher.
Leave a Reply