Pakistan: Imported ferrous scrap prices rise by $2/t w-o-w; weak rebar sales dampen new bookings
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- Buying interest subdued amid weak rebar sales
- Rumours of power tariff cuts create confusion
Imported ferrous scrap offers to Pakistan remained largely stable this week, recording a marginal rise of $2-3/tonne (t) w-o-w, with BigMint's weekly assessment indicating that European shredded stood at $397/t CFR Qasim.
Mills held off on new purchases due to low rebar demand and high inventory levels. According to market insiders, buyers are waiting for price drops instead of committing to current rates.
Overseas scrap suppliers were cautious throughout the week, with many unwilling to enter new agreements due to concerns over risk and price instability. The prevailing uncertainty made it difficult for traders to secure shipments, as buyers were hesitant to make advance payments amid volatile market trends.
Moreover, buying interest was subdued. On the one hand, mills were unable to offload their unused inventories, while on the other, rising operational costs drove them to refuse higher offers.
Despite these challenges, nominal trades happened with shredded prices at $392-397/t earlier last week. Offers rose slightly towards the weekend, to around $398-400/t, following global cues and fluctuating market sentiments from suppliers.
A trader highlighted that the market was slow towards the end of the week, with buyers expecting prices around $392/t or within that range. Shredded from the UAE continues to be priced at $6-8/t higher than the UK-origin material.
"Around 2-3 deals were heard booked from the UK, and 2,000-2,500 t of imported shredded, priced at $395-398/t, arrived in Pakistan in the last seven days,"explained another source.
As per market participants, shredded 211 from the UK/Europe was offered at $405-406/t for 1,000 t loading, followed by shredded 211 from Poland at $410-412/t for 500 t loading.
LMS bundle from the Middle East was offered at $365/t, whereas fabrication from the UAE was available at $402/t. Similarly, HMS from the Middle East was heard at $390/t. All these offers were on a 100% letter of credit (LC) at-sight basis.
Domestic market
Rebar prices in Pakistan stood at PKR 250,000-255,000/t ($897-915/t), while local scrap was at PKR 145,000-150,000/t ($520-538/t). Meanwhile, billet offers edged up to PKR 212,000-215,000/t ($761-771/t) exw.
As per a Karachi-based steel mill, "The market is facing pressure at the moment. Smog in Punjab has disrupted transportation and deliveries. Although domestic scrap offers are being made above PKR 150,000/t ($538/t), bids are still hovering at around PKR 142,000-144,000/t ($509-516/t)."
As per industry reports, rumours of electricity tariff reductions created confusion in the market, leading customers to wait 2-3 days for further clarification. This incident put additional downward pressure on prices.
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