Pakistan: Imported scrap prices up on restocking ahead of Eid

Pakistan’s imported scrap market remained strong as buyers and steelmakers turned active in restocking inventory ahead of the Eid holidays, which will start from next week.

Imported scrap offers to Pakistan remained elevated, due to limited availability of shreddedin the international marketand high domestic demand. However, buyers are restocking inventory as several bookings were reported in the last 2-3 days.

“Due to the upcoming Eid holidays,  business activities in Pakistan will remain quite low for the next 10-14 days. Hence, the mills are actively restocking scrap ahead of the holidays. Acceptance of increased rebar offers is another reason behind mills booking scrap at elevated offers,” said a market insider.

Meanwhile, rains have also started in Pakistan but are yet to impact steel prices, SteelMint understands.

• Around 5,000-7,000 tonnes (t) of shredded (from the US, Europe) deals were concluded at $548-550/t CFR Qasim yesterday, 12 Jul’21, for Aug’21 shipments, a reliable source confirmed to SteelMint.
• Fresh offers for UK/EU-origin shredded are being quoted above $550/t levels, up by $5/t w-o-w.
• Dubai-origin HMS 1 is now available at $515-520/t CFR Qasim levels, moving up significantly by $15-20/t w-o-w. Notably, the difference between HMS and shredded has widened now, due to tight availability.

Domestic steel prices supported: Currently, major steel mills have continued tokeep offers firm. However, some trade discounts are being offered against list prices, SteelMint learnt from market sources. Local steel demand is good as commercial projects are likely to get completed before the Eid. SteelMint’s assessment for G-60 rebar now stands at PKR 151,000-153,000/t exw-Punjab. The official price by major mills was declared at PKR 155,000-157,000/t exw-levels.

Local scrap (equivalent to shredded) prices have risen further by PKR 2,000/t to PKR 102,000/t exy-Punjab.

Outlook
With a recent fall in Turkish scrap prices, Pakistan buyers will likely opt to wait-and-watchafter the Eid holidays. Few mills may also take up plants’  maintenance during the holidays which may dent demand.