Local steel prices have moved up over currency depreciation but markets are likely to turn fully operational next week with the beginning of the new financial year from 1st July in Pakistan
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. In the recent deals concluded, imported scrap prices have moved marginally up as against the levels at which it was concluded in the closing of the last week. Buyers turned active for restocking scrap after Ramadan with the expectation that imported offers may improve further by USD 5-10/MT in the coming weeks.
Local steel markets yet to reopen in full swing over closing financial year – Local steel prices moved up sharply by PKR 3,500-4,000/MT (USD 29-33) after Eid holidays in Pakistan. However, markets are not in full operation owing ongoing auditing activities at most of the firms over the closing of the financial year.
A leading steel mill has booked Shredded scrap in containers from a supplier in UK at USD 383-387/MT, CFR port Qasim. While earlier to which, in the closing of last week few deals for UK based shredded were confirmed in the range of USD 380-382/MT, CFR Qasim
In the closing of last week, 5000 MT of containerized HMS 1 from Dubai sold in the range of USD 370-373/MT, CFR Qasim. Price assessment for HMS 1&2 (80:20) scrap from UAE and South Africa remained mostly at around USD 370/MT, CFR Qasim.
CRC scrap bundles are offered at USD 405/MT, CFR from Europe and no bulk offers were heard. HMS 1&2 (80:20) from UK/Europe origin was being offered in the range of USD 360-365/MT, CFR.
Over an impact of currency depreciation, few participants kept away from the markets again this week. PKR stood 121.6 against USD today which was trading at 120.5 a week ago.
Elections are scheduled in the second half July – According to sources, national elections are scheduled on 25th Jul’18 in Pakistan. Local market activities may slow down again during the second half of July due to political parties’ campaigns.
Average new 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 58,500-59,000/MT (USD 481-485) levels.
Rebar prices in Punjab region assessed 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 831-839) levels as against PKR 96,500-97,500/MT levels before Eid holidays. All these prices are inclusive of taxes.
“Rebar prices have already surpassed the PKR 100,000/MT, levels and few major steelmakers have announced their prices at PKR 102,000-104,000/MT, ex-works levels.” shared a local source.
On the other hand, the ship cutting market at Gadani region witnessed declining sentiments again with no sale concluded last week. Sharp currency depreciation along with the 5% sales tax imposed in a recent budget which will be effective 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.
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