Pakistan Steel Mills Come Back Strong for Imported Scrap

A major steel maker in Pakistan was heard to have booked considerable quantity in containers and steel mills are also looking forward to book some more orders this week.

Pakistan continued with its restocking activities boosting up sentiments in imported ferrous scrap market this week. Latest assessments heard this week increased by USD 10-15/MT on W-o-W basis. Few bookings confirmed this week in containers and buying activities in bulk vessels are also expected to resume back soon. Most of the leading steel mills are running out of stock of scrap materials.

In a recent deal concluded, Pakistan based leading steel mill booked 10,000 MT UK origin Shredded scrap at USD 335/MT, CFR Port Qasim. This is higher by USD 15/MT against last week’s trade reported at USD 320/MT, CFR.

Offers for Europe origin Shredded assessed at USD 330-335/MT, CFR Port Qasim.

Offers for Dubai origin HMS 1&2 in containers which were seen at around USD 295-300/MT, CFR last week have gone up by USD 10/MT and are currently assessed at USD 305-310/MT, CFR.Offers for South Africa origin HMS scrap heard at USD 315/MT, CFR Port Qasim this week.

A participant from a leading steel mill in Pakistan shared –“In a latest deal, 10,000 MT Shredded scrap in containers brought at USD 335/MT, CFR port Qasim. Most of the steel mills are planning to book scrap materials further in upcoming days as stock levels are sinking rapidly. Buying sentiments for imported scrap in Pakistan are very strong.”

However, few market participants are of the view that such high prices may not sustain for a longer time and prices may witness correction.

As of now, no bulk vessels have been booked recently by Pakistan based mills but inquiries are on the higher side, shared a Pakistan based trader.

Pakistan scrap imports on the rise amid new steel capacities coming up – Installed steelmaking capacity in Pakistan is expected to increase from 6 MnT in 2017 to 7 MnT in 2018. In line with this, scrap imports to the country are expected to increase to 5-6 MnT in 2017-18 compared to 4-5 MnT in 2016-17.