Imported scrap trades to Pakistan remain slow

Imported scrap trades in Pakistan remained slow amid wide bid-offer spread. Offers to Pakistan dipped slightly this week after six weeks of successive hikes. However, dull finished steel demand and lower scrap bids resulted in fewer scrap trades this week.

Another reason for slow trades could be slowdown in construction activities this month, due to rains.

• SteelMint's assessment for Shredded 211 scrap from UK/Europe stands at $310/t CFR Qasim, down by $5 against the last week's opening.
  
  
• Scrap suppliers are offering $310-312/t CFR level for shredded in containers.
  
  
• However, no significant deals have been reported at this level. Whereas, buyers' bid price remained at $305/t CFR level.
  
  
• Recently, a Karachi-based major trader booked a decent quantity of European shredded at around $305/t CFR basis.
  
  
• HMS 1 and PNS from Dubai are being offered at around $310/t CFR basis.
  
  
• HMS 1&2 (80:20) from UK and Dubai are being traded in containers at around $300/t CFR Qasim.
  
  
• Few offers for galvanized new bundles stand at $320/t CFR from Dubai.
  
  
• A minimal quantity of Brazilian HMS bundles was booked around $288/t, CFR Qasim.
  
  

"Pakistan imported scrap market is finally starting to open up, albeit slowly due to persistent rains after prolonged Eid holidays with the arrival of labourers on site. We can see momentum picking up after the Muharram Ashura period," said a Pakistan based major steel maker.

"Buyers are not showing interest actively at the moment. They expect the market will come down further", said a Pakistan-based source.

Domestic market overview -

Pakistani steel market has been stable over the past few weeks, though the steel glut persists. Very weak demand was observed due to monsoon and upcoming Muharram months. Government funds for major metropolitan and mega projects have largely dried up.

• Local scrap (equivalent to shredded) price remained firm at PKR 72,500/t, inclusive of taxes.
  
  
• Likewise, deformed bar (Grade 60) offers by Punjab region mills are at PKR 111,000-112,000/t ex plant and PKR 112,000/t for South region mills, ex plant inclusive of all taxes.

  Pakistan Domestic Steel Prices as on 18th Aug'20