Amid less trade activities post Eid holidays, imported scrap prices in Pakistan have remained stable. Market participants reported that many buyers have not yet returned to the market after Eid holidays which has kept the market quiet. Sentiments turn positive however, sellers are hardly offering much at low price levels.
Shredded scrap assessment in containers is learned around USD 340-345/MT, CFR Qasim from recyclers based in UK & USA. However, bids from few Pakistan based steel mills was heard lower by USD 5 than the current offers. Recent upward correction in global market and decent buying at little higher prices from Indian buyers kept sellers holding offers mostly at and above USD 345/MT, CFR Pakistan for containerized Shredded.
HMS 1 from UAE assessed at around USD 340/MT, CFR Qasim although very few offers heard.
“Most of the steel mills have not actively resumed operations after EID holidays majorly due to the shortage of labors. Non-release of payments of contractors and suppliers from governments’ end has resulted in funds shortage in the local market and affected mega construction projects in the country.” shared a source.
However, participants remain optimistic about improvement in local steel demand with increasing scrap stocking activities in upcoming days.
Local steel market yet to resume operations in full swing after holidays – According to sources, average prices for local billet (Bala) stand at PKR 68,500-69,000/MT (USD 556-559) presently ex-plant inclusive of taxes depending on delivery terms. Similarly for grade 60 CC billet prices gauged at PKR 75,500-76,000/MT (USD 612-615), ex-plant inclusive of taxes. Domestic scrap prices stand at PKR 48,000/MT (USD 390) levels now. While ship cutting plate prices assessed last at PKR 75,000/LDT (USD 609/LDT).
Rebar prices for major mills in Punjab region presently assessed at PKR 95,000-96,000/MT, ex-works. While for Sindh region at PKR 99,000-100,000/MT, ex-works.
Ship breaking market likely to show sign of improvement – According to reports, recent inspections of several tankers is to finally result in cutting permissions being issued after 3 months of inactivity. However, Ship breaking market has remained silent last week with no vessels being reported at Gadani port over weak demand. Prices remained unchanged again this week at USD 410/LDT for general dry bulk cargo, at USD 435/LDT for containers and at USD 425/LDT for tankers on CNF Pakistan basis respectively.
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