Pakistan: Imported ferrous scrap prices decline by $10/t in dull finished steel market
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Activity remained moderate in the Pakistan scrap market in terms of fresh inquiries despite a sharp drop in shredded offers from the UK and Europe to $404-$410/tonne (t). Nominal number of bookings was observed. A cautious market watched global price trends as steelmakers aimed to lower their average procurement costs following a recent drop in finished steel prices.
BigMint's assessment for Europe-origin shredded stood at $404/t, down 10/t w-o-w.
According to a few market insiders, it is expected that shredded prices may hover at $405-410/t, while HMS from the UAE could reach up to $385-390/t followed by fabrication at $405/t on CFR Qasim basis.
A prominent mill source informed, "Some buyers are waiting for prices to touch the bottom as Turkiye is also dropping sharply. Our finished steel market is also slowing, giving scrap buyers little reason to get materials at higher prices."
However, the market is likely to face challenges with the onset of Ramadan, leading to a slower pace of buying activity. HMS offers were reported at $390-400/t, but limited availability may constrain transactions.
As per a mill source, "Buying activity in Pakistan and Bangladesh is anticipated to be slow during Ramadan, with inquiries expected to be around $405-410/t. Dull demand for finished steel is cited as the reason behind domestic rebar price reductions."
Another trader source noted," However, not all buyers are purchasing, with some waiting for prices to drop to as low as $395-398/t. Suppliers not willing to drop prices are holding these steady."
Recent deals:
Around 2,500 t of shredded from Europe were sold at $402-405/t on a CFR Qasim basis.
Approximately 3,200 t of Europe-origin shredded were booked at $410/t on a CFR Qasim basis.
Around 1,500 t of UK-origin shredded scrap were sold at $412-415/t on a CFR Qasim basis.
Domestic market: In the domestic market, local scrap offers and indicatives were reported at PKR 160,000-162,000/t ($573-580/t) on an exw-Punjab basis, respectively. Similarly, rebar offers were heard at PKR 260,500-261,500/t($933-937/t) on an exw basis, whereas billet offers were heard at PKR 218,000-220,000/t($781-788/t) on an exw basis.
As per a mill-side source, "The local market is slow as the coil market dropped. Rebar too is slow. Also, from Monday, Ramadan will begin, so buyers will not book aggressively."
Outlook: Industry sources indicate a mixed outlook for the scrap market this week. While traders anticipate potential deals if suppliers become more flexible, prices are expected to hover around $400-410/t. Meanwhile, the Turkish scrap market is expected to experience slight fluctuations in April shipments.
