Imported scrap prices in Pakistan inclined significantly, as compared to last week, and have hit five-months high. Following global uptrend, however, significant trades have yet not been reported at increased prices. On the other hand, the domestic market remained quiet as market has not resumed fully after Eid- holidays.
SteelMint’s assessment for Shredded 211 scrap from UK/Europe stands at $313/t CFR Qasim, increasing by $7/t against the closing of the last week, while moving up sharply by $12/t in contrast with last week’s opening. A good amount of deals were reported at around $308/t CFR levels last week
A Punjab region-based steelmaker booked European origin shredded at around $315/t CFR basis. Offers are increasing continuously and buyers are more cautious at the moment, hence they booking wisely in small lots.
HMS offers too increased on a weekly basis, though few trades have been observed. Middle-east origin HMS 1 being offered at $290/t CFR, increasing significantly by $10 /t against last week’s report. Offers for HMS 1&2 (80:20) from UK stands at $275-280/t CFR, up by $5-10/t on a weekly basis.
In latest deal concluded, a Punjab region-based steelmaker booked HMS and P&S scrap from New Zealand at an average price of $285/t CFR level.
Interestingly, despite, the scrap exports ban in Dubai, few offers for P&S grade scrap being reported at around $308/t CFR Qasim, inclining considerably by $12/t after Eid- holidays, as it was being quoted at $295/t CFR level before Eid-holidays.
Domestic steel market:
The domestic steel market is mostly shut down due to labour shortage amid ongoing Eid-holidays, and the market is likely to be fully operational by next week.
Domestic steel prices remained stable since last few weeks. Deformed bar (Grade 60) offers by Punjab region mills are at PKR 111,000-112,000/t ex plant and PKR 112,000/t for South region mills, ex plant inclusive of all taxes.
Domestic scrap prices have also remained unchanged since Thursday. Local scrap prices (eq to Shredded) stands at PKR 72,500/t inclusive of taxes.
Pakistan Domestic Steel Prices as on 4th Aug’20
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