In recent conversations with market participants, SteelMint learned that Pakistan’s scrap importers have turned quiet over ongoing election campaigns as National elections are scheduled tomorrow (25th July) in the country. Lot of election related activities have been happening in the country since past two weeks. After witnessing sharp currency depreciation last week, Pakistan based importers turned absolutely silent for scrap imports despite of fall in offers and likely to remain waiting for another week.
Following recent deals confirmed at declined prices towards closing of last week in Turkish market, global suppliers have started offering materials at further corrected prices. Offers for Imported scrap have continued moving down by USD 5-8/MT W-o-W since last couple of weeks’ in Pakistan.
Imported scrap offers move down, buyers remain silent – Offers for UK and USA origin Shredded are being reported in the range of USD 360-365/MT, CFR Qasim. Yards are selling UK shredded in containers at USD 365/MT, CFR but traders are selling at lower price over low demand at USD 360-363/MT, CFR.
While price assessment for HMS 1&2 scrap from Dubai stands at USD 345/MT, CFR Qasim against last report of around USD 350/MT, CFR last week. Limited quantities of HMS 1 heard to have sold at USD 350/MT, CFR Qasim levels.
“Presently, few of the buyers are preferring domestic scrap over imported as it is cheaper by around PKR 3000/MT than imported. Local steel market has turned silent amid elections and currency is still depreciated. While ‘weak demand and surplus supply’ situation kept everyone bounded to wait for few more days in the market.” – shared a source.
PKR now stands at 128.3 against USD which has remained almost stable on weekly basis after observing the last sharp depreciation ahead of elections.
Local steel prices turn downward on weakened demand – As an impact of sharp currency devaluation local billet, rebar and domestic scrap offers in Pakistan had jumped up by PKR 2500-3500/MT (USD 20-27) last week. However, since last couple of days prices have come down again at earlier levels owing to weakened demand amid election winds, heavy monsoon and holding of funds by government towards intercity construction projects.
Domestic scrap prices stand at PKR 57,500-58,000/MT (USD 448-452) levels which are PKR 2500-3000/MT cheaper as compared with imported scrap. While ship cutting plate prices assessed last at PKR 80,000/LDT.
According to sources, average prices for local billet (Bala) are assessed at PKR 78,000/MT (USD 608) presently. Similarly for grade 60 CC billet prices gauged at PKR 88,000/MT (USD 686), ex-plant inclusive of taxes. The demand for good quality billets remains stable in the market keeping its prices stable thus gap between low grade billet and high grade billet widened to PKR 9,000-10,000/MT.
Rebar prices in Punjab region are presently assessed at PKR 102,000-103,000/MT, ex-works and at PKR 105,000-106,000/MT levels ex works in Sindh region. All these prices are inclusive of taxes.
Ship cutting market at Gadani region observed declining sentiments again this week. Although tankers have fetched reopening permissions on paper, in practice, they are far from having lifted their sanctions. In order to ensure the current standards fully complied regarding ‘gas free for hot works’ cash buyers need to take serious safety measures. Ship cutting prices moved down at USD 400/LDT for general dry bulk cargo; at USD 430/LDT for containers and USD 420/LDT for tankers on CNF Pakistan basis respectively.
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