In recent conversations with market participants, SteelMint learned that importers have continued scrap bookings at almost stable prices on W-o-W basis in Pakistan.
A leading supplier in UK sold Premium quality Shredded 211 scrap at USD 387-388/MT, CFR Port Qasim. While the offers from European suppliers stood at around USD 385/MT, CFR Qasim. South African HMS 1 scrap assessed at around USD 374-376/MT, CFR Qasim while few deals for containerized HMS 1 from Dubai concluded in the range of USD 372-374/MT, CFR Qasim. These prices have inched up marginally on W-o-W basis.
Price assessment for HMS 1&2 (80:20) from middle east and South Africa remained stable at around USD 370/MT, CFR Qasim and from UK and Europe origin in the range of USD 360-365/MT, CFR.
“Slight softening of prices by USD 5-7/MT is expected in upcoming two weeks’ time as Turkey has slowed down purchases along with India and Bangladesh but it would turn active for August bookings anytime if finish steel demand will improve in the country.” shared a source.
Few participants remain apprehensive about further currency devaluation in the country amid or after national elections, which are scheduled in the second half July. Buying activities are expected to slow down in domestic market on political campaigns.
Recent hike in fuel prices and electricity tariffs – Domestic markets also remained tensed on the recent price hike for crude fuels and electricity tariffs in the country. With the beginning of new financial year from 1st July, Diesel prices have increased from PKR 105 to PKR 119 levels and Petrol prices from PKR 92 to PKR 99-100 levels per liter. Electricity tariffs also increased from 10.5 per unit to 13 per unit now. Considerable impact of this can be observed in the Pakistan’s market in coming few days.
Local steel prices continue uptrend – Local steel prices continued uptrend again this week as activities have gained momentum in the markets but ongoing heavy monsoon, high prices and upcoming elections remained major concerns. Local steel prices have moved up by PKR 500/MT on W-o-W basis on improving demand.
Average prices for local billet (Bala) assessed at PKR 79,500-80,000/MT (USD 654-658) levels. Similarly, grade 60 CC billet prices assessed at around PKR 85,500-86,000/MT (USD 703-707) ex-plant inclusive of taxes. Domestic scrap prices were assessed at PKR 59,000-60,000/MT (USD 485-493) levels.
Rebar prices in Punjab region assessed stable at PKR 98,000-99,000/MT (USD 806-814), ex-works levels. For Sindh region, rebar prices assessed at PKR 101,000-102,000/MT (USD 830-839) levels stable on weekly premises inclusive of local taxes.
On the other hand, the ship cutting market at Gadani region remained less competitive with declining sentiments again last week. Sharp currency depreciation along with extra tax burdens imposed after 1st July compelled Pakistani buyers to remain sidelines in ship breaking since last few weeks. Ship cutting prices assessed stable at USD 410/LDT for general dry bulk cargo; at USD 430/LDT for containers and USD 420/LDT for tankers on CNF Pakistan basis respectively. In a sale concluded a VLCC of 41,770 LDT volumes reported at USD 410/LT LDT. Local ship cutting plate prices assessed at PKR 74,000-75,000/LDT (USD 608-615).
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