Pakistan: Imported Scrap Prices Inch Up in Recent Trades

After the global scrap market resumed this week post winter vacations, Imported scrap offers to Pakistan moved further up, with HMS offers especially showing a sharper uptrend. As trades picked up slightly, decent bookings were reported at increased prices, but buyers did not overbook the material amid the slow domestic market and high input costs.

SteelMint's assessment for containerized shredded 211 scraps from UK/Europe remains range-bound between USD 316-320/MT, CFR Qasim, up by around USD 5/MT against last week's report. Shredded trades from UK and Europe got concluded at USD 316-317/MT CFR, while fresh offers were reported up to USD 318-320/MT CFR.

More active booking was observed by mills in the South/Karachi region in comparison to the Punjab region. Although, high import offers and slow steel demand have kept steelmakers' margins tight for several weeks.

UAE origin HMS offers shot up due to strong sales to India in the recent weeks, with HMS 1 super (no ci gi) reportedly being offered at USD 312/MT CFR Qasim, while offers for higher quality HMS sarya/melting stood at USD 320/MT CFR. Offers for South African origin HMS 1 presently stands at USD 315/MT CFR, on par with offers to India.

Few offers for LMS bundles were also reported this week at around USD 275/MT CFR, with some bookings getting concluded.

Domestic steel market overview in Pakistan - Few Pakistan based trade sources claimed that the domestic market has not been able to pick up as yet with the out of season rainfall further hampering the construction activities. While a strike by All Pakistan Goods Transport Association on fuel price hike has further affected the sales.

However others claim that recent hike in electricity tariffs has resulted in increase in steel prices in Sindh region. Several mills, especially in South/Karachi region, are deliberating over a price hike in the coming days.

In the northern region, rebar's average offer prices were reported at around PKR 104,500-105,500/MT, ex-works (USD 671-677), while southern (Karachi region) steel mills are offering at PKR 106,000/MT (USD 683) ex-works. One major mill in Karachi region which offers at a premium has released its price of Deformed bar G 60 at PKR 115,000/MT ex works.