Pakistan: Imported scrap prices inch up in recent trades, steel prices yet to pick-up

Imported scrap market has observed limited trades today due to the national holiday. However, prices moved up marginally in the trades that were concluded yesterday. Trade sources are hopeful that trade activities will gain momentum ahead of Ramadan festival which will start in the next two weeks.

• SteelMint's assessment for UK/EU origin containerised shredded stands at $437/t CFR Qasim levels, slightly up by $4/t w-o-w. Fresh offers are even being quoted at $435-440/t CFR Qasim basis.
  
  
• Buyers' expectations for high seas shredded cargo remains at around $420/t CFR levels.
  
  
• Confirmed deal of around 1,000 t of imported shredded in containers was concluded yesterday at $440/t CFR Qasim basis.
  
  

"Domestic steel prices are likely to shoot up on active buying before Ramadan. However, later due to market slowing down during Ramadan month, trades may remain subdued" shared a prominent market participant.

Domestic rebar offers fall marginally: Domestic steel prices have come down slightly as market remained sluggish due to restrictions on working days due to COVID. According to SteelMint , prices for G-60 rebar in Punjab region stand at PKR 129,000/t exw, down by PKR 500/t w-o-w.

Major steel mills are quoting rebar prices at around PKR 135,000-137,000 exw levels. While in Punjab province demand is less and it is difficult to sell even at PKR 127,000-130,000/t exw levels. Some major companies have reduced their rebar prices by PKR 2,000/t to maximise sales before Ramadan, SteelMint learnt from market insiders.

Outlook: People are looking to replenish their scrap stocks and trades are picking up. Before Ramadan scrap prices may shoot up as construction work may become slow during the festival.