Steel prices in Pakistan are firm and expected to pick up after long Eid holidays, SteelMint learnt from market participants.
As per assessment, offers for 12-32mm rebars by the local mills in Karachi, Pakistan are hovering at 83,000-85,000 Pakistan Rupee (USD 785-805) & Billet at 64,000-66,000/MT Pakistan Ruppee (USD 605-625); ex-works & including of 17% local taxes.
Pakistan’s steel demand is consistently increasing on government’s spending due to ongoing CPEC project.
“Trade activities are improving as construction work is gradually picking up after long Eid Holidays. Steel prices are likely to remain strong.” said a steel mill based in Karachi.
Another reason for the expected price rise is higher input cost. Pakistan steel industry is dependent on either imported melting scrap or ship cutting plates, which are derived from obsolete ships.
Imported scrap offers are high and currently being offered at USD 320-325/MT for HMS & USD 345-350/MT for shredded grade, CFR Port Qasim, Pakistan.
Pakistan steel mills have not made fresh bookings of imported scrap for quite some time. But they are expected to return to market soon, reports local scrap traders.
On the other hand rising steel prices in global market will support ship breaking prices.
Local Ship breaking prices are reported at 40,000-42,000/MT Pakistan Rupee (USD 380-400) & plate cutting at 55,000-57,000 Pakistan Rupee (USD 520-540); ex-works , including of local taxes.
“Hopefully demand & prices to rise as trade activities are normalizing and are expected to boost in near term. In addition, high input cost is another major factor which is influencing to keep the prices on rising mode” a rebar producer who’s annual production capacity at 0.2 MnT, based in Industrial hub of Karachi stated.
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