Pakistan: Imported scrap prices increase amid active buying

Pakistan's imported scrap market remained active this week with numerous deals in containers getting reported, even as prices to Pakistan kept increasing marginally throughout the week.

SteelMint's assessment for Shredded 211 scrap from UK/Europe stands at $290/t CFR Qasim, up by around $5/t in comparison to $285/t CFR levels in the closing of last week.

A major trader based in Karachi sold a total of 3500 t of European shredded 211 at around $ 290/t CFR in the last two days, with many other bookings for shredded from Europe and UK getting closed at around $288-290/t CFR since yesterday.

Fresh offers for shredded from UK/Europe are being offered in the range of $288-290/t CFR Qasim, depending on the quality of material. Some buyers' bids from Karachi region were reported around $285-288/t CFR basis.

HMS scrap offers were very less in no. this week, with both UAE and South Africa having suspended their scrap exports till August end, however, some HMS offers from the middle east were reported at $270-275/t CFR.

Domestic steel market remained slow with many metropolitan and major construction projects are on hold due to limited funds issued by the government as well as COVID-19 lockdown. Addition to it monsoon also slowed down the construction activities.

As estimated by SteelMint earlier, domestic steel prices have decreased from last week. Deformed bar (Grade 60) offers by Punjab region mills standing at PKR 111-112,000/t ex plant, moving down by around PKR 1000/t over the week.

Local scrap prices (eq to Shredded) remained stable this week and stood at PKR 71,000/t inclusive of taxes.

Pakistan Domestic Steel Prices as on 14th July'20
Prices in PKR
Source: SteelMint Research