Pakistan’s imported scrap market remained mostly quiet during last week. Market insiders believe that offers have now bottomed out and are less likely to fall further. Few Pakistan based sources indicated that there is not much cargo available in high seas and mills may now have to turn to yards for placing fresh bookings.
SteelMint’s assessment for the UK/EU origin now stands at $400/t CFR levels, registering a fall of $10 w-o-w. Fresh offers for Dubai origin PNS are being cited at $385/t and that of HMS is around at $365-370/t CFR Qasim level.
“Offers for shredded from yards are still in the range of $400-405/t CFR Qasim basis and they are not willing to lower further. However, few offers for high seas cargo are still available at $390/t CFR level”, shared a prominent trader.
“Activity seems to be regaining as last week was very slow, however few bids for shredded are still at $380-390/t CFR level”, a major steelmaker has shared with SteelMint.
Domestic steel prices fall further: Domestic steel market rates followed the downtrend of imported scrap prices. Many steelmakers were clearing out their stocks and orders which are in hand because many had booked at lower rates. As the market collapsed, many mills stopped taking new orders and cleaned out the supply chain. Now it seems that business activity has gained traction due to better weather, SteelMint learned from its reliable sources.
Domestic steel prices fell but now it seems to have bottomed and may bounce back up in the coming days. According to SteelMint assessment, prices for G-60 rebar stands at PKR 126,000/t exw, down by PKR 3,000/t w-o-w.
Outlook– Buyers are now likely to book fresh slots this week for Mar’21 shipments.
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