Imported scrap Offers to Pakistan have inched up slightly after remaining stable for over a week, as the market expects the global prices to rebound in the coming days. Trade activities remained decent as few bookings were heard, however, the market is flooded with inquiries as buyers look to restock before any sharp rebound in prices.
Domestic finished steel prices inched down for the Northern (Punjab) based mills while offers for local scrap and billets too moved down.
SteelMint’s assessment for containerized Shredded 211 scrap from UK/Europe stands at USD 253-257/MT, CFR Qasim, up USD 3-4/MT against last week’s report. Although some deals for Shredded in containers were concluded at USD 252-253/MT CFR at the beginning of the week, now offers are at USD 255-257/MT and above.
The anticipation of a further rise in prices in the coming days is likely to keep buyers active for procurement.
Offers for imported HMS form both origins saw an increase, even as trades remained limited this week. Dubai origin HMS 1 (super) was reported to be offered at around USD 262/MT CFR Qasim while higher quality HMS (sarya) stood at USD 270/MT. European origin HMS 1&2 (80:20) stood at USD 240/MT CFR amid limited interest.
Domestic steel prices fall marginally – Finished steel prices moved down slightly for another week, on very competitive pricing among steelmakers while certain liquidity issues and lack of funds kept demand from construction sector slow. However, few market participants believed that demand is likely to pick up in coming days and the current stability and uptrend in the imported scrap prices will keep finished steel prices supported for the next few weeks.
In the northern region, rebar average selling prices were reported at around PKR 109,000-110,000/MT, ex-works (USD 694 – 701), down by PKR 1000/MT on a weekly basis, while Southern (Karachi region) steel mills have kept their rebar offers unchanged at PKR 110-111,000/MT ex-works.
Price for Local scrap eq to shredded fell by PKR 1000/MT after a slight increase last week, and currently stands at around PKR 63,000/MT ex-works.
| Particular (Average Selling Prices) | 9-Oct’19 | Last Assessment on 1-Oct’19 | Change W-o-W |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 63,000 | 64,000 | -1000 |
| Bala (Local Billet) | 83000 | 84000 | -1000 |
| CC Billet (Grade 40) | 88,000 | 89,000 | -1000 |
| CC Billet (Grade 60) | 90,000 | 91,000 | -1000 |
| Deformed bar (G-60), Ex-Punjab/KPK | 109,000-110,000 | 110,000-111,000 | -1000 |
| Deformed bar (G-60), Ex-Sindh (Karachi) | 110,000-111,000 | 110,000-111,000 | 0 |
Source: SteelMint Research
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