Local steel market remained mostly stable amid which importers remain looking for restocking scrap however on the lesser availability of offers not much trades have been reported in the market at corrected prices.
In recent conversations with market participants, SteelMint learned that Pakistan scrap importers have turned slightly active for scrap imports as few deals in containers concluded in the market at further corrected prices. However, not many trade deals have concluded on the lesser availability of offers from suppliers’ end at corrected prices.
Importers in Pakistan remain looking for cheapest possible prices available in the market on significantly improved buying interest. However, less clarity about clear price direction in the global scrap market compelled most of the suppliers and buyers to remain in the ‘wait and watch’ mode.
The price assessment for Shredded scrap from UK/Europe stood in the range of USD 370-375/MT, CFR Port Qasim, down by USD 5/MT on W-o-W basis. Few limited quantity deals for Shredded 211 scrap from UK heard to have sold in the range of USD 365-370/MT, CFR although not many deals reported as suppliers remain hesitant to offer considerable volumes at these levels.
HMS 1&2 (80:20) scrap from UAE and South Africa assessed stable at around USD 365-370/MT, CFR Qasim. HMS 1 offers were being quoted at USD 370-375/MT, CFR which remained still higher than current buying interest, also no bulk offers heard again this week.
On the other hand, the latest price assessment in Turkey for USA origin HMS (80:20) rebounded back at USD 340-342/MT, CFR Turkey levels in the recent trades concluded. This may lead to increase in prices in Pakistan too.
Domestic steel prices nearly stable this week – Last week Pakistan’s local Billet (Bala) and domestic scrap prices were recovered sharply by PKR 2000-3000/MT (USD 17-26) W-o-W. However after which market kept moving up slowly and now participants are believing that the local market likely to sustain these levels with chances of further upward corrections in the coming days. Restocking activities are expected to gain momentum within next one-two weeks as scrap inventories are still not much considerable with most of the importers in Pakistan.
Current average prices for local billet (Bala) assessed at around PKR 74,000-75,000/MT (USD 640-648) and grade 60 CC billet assessed at around PKR 79,500-80,500/MT (USD 687-696), ex-plant inclusive of taxes. Rebar prices assessed at PKR 91,500-92,500/MT (USD 790-799), ex-works in Punjab region inclusive of taxes on weak demand rebar prices had edged down in Pakistan last week.
Pakistan average local steel reference prices as on 5th June –
| Average Prices in PKR/MT, Ex-work Punjab, Pakistan inclusive of taxes | |||
| Commodity | 5th Jun’18 | 1 Week ago | W-o-W Change |
| Local Scrap | 53,500-54,500 | 52,000-53,000 | +1500 |
| Bala (Local Billet) | 74,000-75,000 | 73,000-74,000 | +1000 |
| CC Billet (Grade 60) | 79,500-80,500 | 79,000-80,000 | +500 |
| Rebar | 91,500-92,500 | 91,500-92,500 | = |
Source: SteelMint Research
Amid sustained effect of ongoing Ramadan festive, electricity supply cuts and arriving monsoon ship cutting market at Gadani region witnessed declining sentiments and activities reduced further witnessing no sale concluded last week. Ship cutting prices have moved down marginally on W-o-W basis and assessed at USD 420/LDT for general dry bulk cargo; at USD 440/LDT for containers and at USD 430/LDT for tankers on CNF Pakistan basis respectively.
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