The current scenario of Pakistan steel market shows that the country is emerging as a big trade hub of steel raw material in the recent past. With ample development projects that are going on in the country, the bookings are being actively done to meet the demand of the market.
The price offers heard according to a trader in Pakistan – HMS from Kuwait and Dubai is said to be at USD 300-305/MT at port Qasim and at port Karachi it is said to be USD 295/MT, Cast Iron at USD 280/MT. Port Qasim is the preferred port as compared to port Karachi.
Pakistan is usually a importer of containerized scrap but recently it is heard that 2 vessels of Bulk Scrap have been booked from UK and US as there is high difference of freight between the containerized and bulk scrap. Booking of PNS at an average rate of USD 325/MT has also taken place as heard by a trade source from the country.
One of the market participants informed that currently the local billet prices are said to be at 65,000-67,000 Pakistan Rupee (approx USD 617-636/MT) against the two weeks ago 63,500-65,500 Pakistan Rupee (approx USD 604-623/MT)
According to a source in Pakistan, “The demand is increasing because of the various infrastructure projects lined up mainly the coal based power projects and dams, The CPEC (China-Pakistan Economic Corridor) that is to be completed within the next three years, and the Silk Road (proposed road project between Gwadar in Pakistan to Kashgar in the Chinese region of Xinjiang).”
The products in demand are mainly rebars in long rolled segment. Hence, current per capita consumption from 30-32kg against world average about 210kg is expected to reach 40kg in coming time, this pace of growth has not been seen in steel sector of Pakistan.
The demand as well as price is increasing, also as an anti-dumping duty of 24.4% on Chinese Origin steel billets was imposed and earlier this year duties were imposed to Chinese imports (preliminary dumping margin of 53% on rebar & anti-dumping duty up to 40% on galvanized steel coils and sheets) . All these changes are made for empowering of the local mills to come up.
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