Pakistan: Active buying sends imported scrap prices up

Pakistani buyers remained active in the imported scrap market with decent trades being concluded in the last one week. Offers from UK/EU recycling yards have increased by $5 w-o-w.

According to sources report to SteelMint, a European based recycler has closed more of its operations in its UK-based recycling activities, due to the increasing no. of COVID-19 cases. The pandemic has created a shortage of scrap all over the world, market participants consider that there might be a supply crunch in the market, pushing imported scrap offers at the higher side.

"I heard trades of 3,000 t containerized shredded concluded towards the closing of last week at $306/t CFR levels. However this week, yards have not been that active on indications of tight supplies. Offers have increased and it seems to be a seller's market now", highlighted a Pakistan-based scrap trader.

SteelMint's assessment for imported Shredded 211 scrap in containers from UK/Europe stands at $312/t CFR Qasim, up by $5 as compared to last week.

Recent trades and offers-

• Around 2,000 t of UK origin shredded (in containers) have been booked yesterday at around $307/t CFR basis, up by $2/t against the closing of the week.
  
  
• Towards the closing of the last week, around 5,000 t of UK/EU origin shredded have been sold at around $305-306/t CFR Qasim basis.
  
  
• Whereas, in another deal concluded a 1,000 t of shredded has been booked at $304/t CFR Qasim.
  
  
• Offers for HMS 1&2 (80:20) stand at $295/t CFR and $290/t CFR for UAE and UK origin respectively.
  
  
• UAE origin PNS Sarya in containers is currently traded at $320/t CFR Qasim.
  
  

Hike in electricity tariffs to restrict price fall in domestic market - The power division on Monday notified an increase in electricity rates by PKR 1.09 to PKR 2.89 /unit for consumers of the K-Electric (Karachi Electric) to bring them on a par with the rest of the country, effective from 1st Sep'20.

Local scrap prices (eq to Shredded) observed a rise by PKR 500/t this week and stood at PKR 72,000/t inclusive of taxes, while deformed bar prices remained firm and stand at PKR 108,000-109,000/t for Punjab and PKR 109,000-110,000/t for South region, ex plant basis, inclusive of taxes.

Pakistan domestic steel prices as on 12th Oct'20