Pakistan’s imported scrap market remained dull for yet another week. Lower bids, distressed cargo sales and holding back of offers from suppliers limited trade in the past two weeks.
“Offers from yards remained at a higher level, while traders lowered offers (for distressed cargoes) to get the maximum profit, anticipating a price drop,” said a market player.
- In a recent deal, a decent quantity of UK-origin shredded material was booked at $560-562/t CFR Qasim basis. Distressed cargo offers were being heard at $555-557/t CFR Qasim basis.
- UAE-origin HMS 1 was being offered at $535-540/t CFR Qasim, inching up w-o-w. However, deals remained absent. Increased freight rates pushed up offers.
Reasons that have limited imported scrap trade
- Rebar prices decline further: Slow rebar consumption from end-users increased rebar inventory with the mills. Hence rebar trade prices dropped further by PKR 1,000/t ($6/t) to PKR 184,000-185,000/t exw ($1,042-1,048/t) level.
- Liquidity issue: Liquidity issues during the electricity billing period have turned the market dull. There is a buzz in the market that electricity prices are likely to increase up to PKR 6.1 per unit.
- Local scrap prices fall: With a continued decline in local scrap prices, mills prefer to procure locally sourced material, SteelMint learnt. SteelMint’s assessment for domestic purest scrap (equivalent to shredded) stand at PKR 118,000/t ($668/t) exy level.
Pakistan domestic prices
Outlook: Considering the continued silence in the scrap market in the past couple of weeks from major mills, there may be pick-up in trade after a week’s time amidst falling inventories.
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