Pakistan: Imported Scrap Offers Fall Marginally
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Imported scrap prices to Pakistan slightly inched down this week with decent trades being concluded. However with European yards likely to close down in a few weeks, bookings may increase in the coming weeks amid winter restocking.
SteelMint's assessment for containerized Shredded 211 scrap from UK/Europe stands at around USD 280-283/MT, CFR Qasim, slightly moving towards the lower end of last week's range. Average bookings for shredded scrap were reported in the range of USD 281-282/MT from UK based yards, while few traders sold some material at USD 284-285/MT CFR.
Few steelmakers shared that, with the upcoming winter holidays for the European yards, the suppliers are expected to keep the offers firm, and the prices are likely to remain mostly stable at the current levels.
HMS scrap offers have moved down further against last week amid limited demand from buyers, with UAE origin HMS 1 (super) now being offered at around USD 275-276/MT CFR and offers for European Origin HMS 1&2 (80:20) fell sharply and currently assessed at around USD 260/MT CFR.
Domestic finished steel prices unchanged - Domestic steel market has stood flat since observing a significant fall 2 weeks ago. For yet another week, domestic steel market in Pakistan awaited improvement in demand from the end users, as prices remain flat after plummeting to record low levels a couple of weeks ago.
Local scrap (eq to shredded) inched up to PKR 63,000/MT ex works, on the other hand, all grades of Billet witnessed a slight decline by around PKR 500/MT.
In the northern region, rebar's average offer prices were reported at around PKR 105,000-106,000/MT, ex-works (USD 676-682), while southern (Karachi region) steel mills are offering at PKR 106-107,000/MT (USD 682-687) ex-works, stable against last week.
| Particular (Average Offer Prices) | 26-Nov'19 | Last Assessment on 19-Nov'19 | Change W-o-W |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 63,000 | 62,000 | 1000 |
| Bala (Local Billet) | 83,000 | 83,000 | 0 |
| CC Billet (Grade 40) | 87,500 | 88,000 | -500 |
| CC Billet (Grade 60) | 88,500 | 89,000 | -500 |
| Deformed bar (G-60), Ex-Punjab/KPK | 105,000-116,000 | 109,000-110,000 | 0 |
| Deformed bar (G-60), Ex-Sindh (Karachi) | 106,000-107,000 | 110,000-111,000 | 0 |
Source: SteelMint Research
