Imported scrap trades to Pakistan witnessed slight improvement recently, in comparison to last week, even as offers from global suppliers moved up further, as lesser material is available to Pakistan amid active buying in Turkey and a general scrap shortage. Meanwhile all steel plants are finally running again after Eid holidays, and in the coming weeks demand should pick up further.
SteelMint’s assessment for Shredded 211 scrap from UK/Europe stood at USD 288/MT CFR Qasim, up by USD 6-8/MT against last week’s report. Majority of the fresh offers are in the range of USD 286-289/MT CFR, while some bookings by Punjab region mills were reported at USD 285/MT up to USD 288/MT CFR. Buying in Karachi region stood slightly slower. A few premium yards in the UK are demanding up to USD 290/MT now for Shredded.
HMS 1 premium offers from South Africa were witnessed at USD 260-265/MT CFR, while some sales of South African HMS to Indian ports like Nhava Sheva and Mundra were reported recently, which may drive the prices up, especially when the UAE alternative in no longer available till at least September.
“We have enough stock till August now, so have taken a brief break from the market, while we will again book for July shipment in a few weeks” shared a soure from Punjab based mill.
“Latest Shredded purchases at up to USD 288/MT do not come as a surprise, given the expected rise in demand by the middle of this month” shared an Islamabad based mill who had made their last Shredded booking at USD 280/MT earlier last week.
From yesterday onwards, post Eid holidays, even those steel mills have resumed operations, which had not started production from 11th May (after Govt permissions), hence due to increased availability from all the steelmakers, there was a slight drop in prices, as estimated earlier by SteelMint.
Finished steel prices are down by over PKR 1000/MT in both the regions, with Grade 60 Deformed bars being offered at PKR 111,0000-112,000/MT in Punjab and PKR 113,000/MT in Karachi, ex plant basis.
| Average Offer Prices | Assessment on 02 Jun’20 | Last Assessment on 21 May’20 | W-o-W Change |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 67000 | 66000 | 1000 |
| Bala (Local Billet) | 88000 | 87000 | 1000 |
| CC Billet (Grade 40) | 92000 | 93000 | -1000 |
| CC Billet (Grade 60) | 93000 | 94000 | -1000 |
| Deformed bar (G-60), Ex-Punjab/KPK | 111,000-112,000 | 112,000-113,000 | -1000 |
| Deformed bar (G-60), Ex-Sindh (Karachi) | 112,000-113,500 | 113,000-114,500 | -1000 |
Source: SteelMint Research
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