Pakistan imported scrap market has witnessed a sharp rebound in prices in recently concluded trades. Increasing demand and tighter material availability with suppliers remained the major factors behind the sharp price hike. Only big players are active in the current market, whereas other steelmakers are booking as per their requirements, cited traders. However, with an increase in number of inquiries, trades are likely to strengthen in the near term.
SteelMint’s assessment for the UK/EU origin containerised Shredded now stands at $447/t CFR levels, registering a sharp hike of around $35-40 w-o-w. Fresh offers for Dubai origin HMS are being cited at $420-425/t CFR Qasim level, moving up significantly w-o-w.
“Confirmed deals of shredded scrap for around 3,000-4,000 t have been heard at $440/t CFR Qasim basis. Whereas, offers have increased further and are now at $442-450/t CFR levels. Inquiries have increased and it is expected that some more deals will take place at $445/t as well”, shared a prominent Pakistan-based trader.
Domestic rebar offers likely to increase: Local market activities have started to pick-up, however, end buyers are confused about the rates. The price volatility has left many end customers confused about local market which has affected the demand. However, based on increased scrap offers from global suppliers, many buyers will rush out to book fresh orders and an increase in domestic prices would be reflected, SteelMint learned from its credible sources.
Domestic steel prices were mostly stable as March is usually a month of excess demand in Pakistan. However, prices are likely to move up in the coming days. According to SteelMint assessment, prices for G-60 rebar stand at PKR 126,000/t exw, stable on weekly basis. Whereas, other substitutes such as Bala and billet prices have increased w-o-w.
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