Strong local prices for billet and rebar in Pakistan continues to keep importers active in booking containerized scrap at stable prices.
As per recent conversations with market participants, SteelMint learned that Pakistan has been witnessing active buying for imported scrap before holidays for Ramadan. In few recent trades concluded in containers, the prices for imported scrap remained almost stable on W-o-W basis. Steel mills kept active for restocking materials amid still low inventories.
The price assessment for Shredded 211 scrap from USA stood around USD 390/MT, CFR Port Qasim while few offers from UK remained in the range of USD 385-390/MT, CFR Pakistan. In recent deals reported, around 5000 MT of Shredded scrap heard to have sold in the range of USD 382-387/MT, CFR Qasim.
Sellers are quoting slightly above than current price levels however buyers have not increased their prices yet and buying interest still remains at stable levels for imported scrap in Pakistan.
Offers for HMS 1 scrap from UAE stood at around USD 380-385/MT, CFR Port Qasim this week. While South African scrap was being offered at USD 380/MT, CFR Qasim. In a deal reported, 4000 MT of containerized HMS 1 sold at price level of around USD 375/MT, CFR Pakistan. However, sources believe that this deal might have been booked for long duration shipment instead of regular shipment.
Local scrap prices in Pakistan remained high – Average domestic scrap prices assessed at around PKR 55,000-56,000/MT for Shredded and PKR 53,000-54,000/MT for HMS (80:20) in Pakistan. Rollable ship plates prices for ship cutting remained at PKR 73,000/MT for 6 mm.
Pakistan’s Shipbreaking market reopens for tankers – Although no official notice has been received from Pakistan’s government, the market participants shared that Pakistan has allowed the tankers imports for ship cutting operations in the Gadani area. It has allowed around 10 ISO certified ship-breaking plots to operate demolishing for oil tankers which were banned after Nov’16 owing to an accident. As an impact of this, price expectations have moved up for yard owners and supply side likely to get improved in local market in Pakistan.
Ship breaking prices in Pakistan remain stable this week against the last report with no sale reported in the market. Prices assessed at USD 425/LDT for general dry bulk cargo and at USD 445/LDT for containers on CNF Pakistan basis.
Local steel prices on an uptrend in Pakistan – Increasing restocking activities for raw materials well ahead of Ramadan holidays, have pushed Pakistan’s domestic steel prices upward this week. Local market is on uptrend amid slight shortage for prime quality billets in Punjab region. Average prices for local billet (Bala) assessed at around PKR 73,500-74,000/MT and grade 60 CC billet assessed at around PKR 79,500-80,000/MT, ex-plant in Pakistan.
Following which, rebar prices in Punjab and Sindh regions have also increased by PKR 1000-2000/MT on W-o-W. Participants remain more optimistic towards international markets as local prices are at par with an international market in Pakistan. Amid increasing buying inquiries, importers are likely to book more volumes of scrap in near terms at stable prices in Pakistan.
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