As per recent conversations with market participants, SteelMint learned that Pakistan’s imported scrap market remained stable this week. Buying sentiments remained firm over the positive outlook on the market which is likely to gain momentum after Ramadan holidays. Participants also pointed out that domestic market is healthy and remained unchanged in terms of prices and activities on W-o-W basis.
The price assessment for Shredded scrap from USA and UK remain stable since last two weeks at USD 388-393/MT, CFR Port Qasim. Offers for HMS 1 scrap from UAE stood at around USD 382-385/MT, CFR Qasim. Offers for South African HMS scrap stood in the range of USD 375-380/MT, CFR Qasim.
In recent trade deals confirmed, around 2000 MT Shredded 211 from Europe in containers sold at around USD 387-388/MT, CFR Qasim. Around 3000 MT of containerized South African HMS sold at USD 375-377/MT, CFR Qasim.
Local steel prices in Pakistan remain strong – After announcement of an increase in sales tax and power tariffs in budget ’18, finish steel prices increased sharply in Pakistan. Prices remain strong with healthy sentiments in finish steel market.
Current average prices for local billet (Bala) assessed at around PKR 76,000-76,500/MT (USD 656-660) and grade 60 CC billet assessed at around PKR 82,000-82,500/MT (USD 708-712), ex-plant in Pakistan inclusive of taxes. Rebar Grade 60 prices assessed at PKR 94,000-95,000/MT (USD 811-819), ex-works in Punjab region inclusive of taxes. While commercial rebar offers remain mostly in the range of PKR 88,000-90,000/MT (USD 760-777), ex-works including taxes.
As per sources, the ‘Pakistan Steel Melters Association’ recently presented a request to Government to relook into the taxation policy highlighting the adverse effects on steel melting sector which are being experienced. Post hike in power tariff from PKR 10.5 levied presently to PKR 13 in recently presented Budget. Market participants remain waiting for the response on it. However, no updates have been received yet.
Ship breaking activities improved slightly – Gadani ship cutting market witnessed another oil tanker sold after reopening of the market last week. Tanker PACIFIC ENERGY (16,425 LDT) was concluded from Greek owners at the remarkable price of USD 470/LDT.
Despite expectations for price rise from yard owners, sale price levels remain well below than threshold. Ship breaking market observed speeding up sentiments as other Asian competitors are less working at the moment. Current prices assessed for general dry bulk cargo at USD 440/LDT for containers at USD 460/LDT and for tankers at USD 450/LDT on CNF Pakistan basis. These prices remain stable on W-o-W.
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