Pakistan: Imported scrap prices move up on supply tightness

Imported scrap offers have strengthened further this week on lower scrap collection rates. Notably, with a spike in COVID cases in European nations, scrap generation has been adversely impacted. This in turn has pushed imported scrap offers up further, sources have reported to SteelMint.

However, there is a gap between suppliers' offers and bids. SteelMint's assessment for imported Shredded 211 scrap in containers from UK/Europe stands at $317/t CFR Qasim, up by $5 as compared to last week.

Recent trades and offers-

• Around 1,000 t of UK origin shredded have been booked two days ago at around $314/t CFR basis, up by $7/t against the opening of the last week.
  
  
• Another 1,000 t of shredded was booked at around $312/t towards the closing of the last week.
  
  
• Offers for shredded have moved up and are currently quoted at $315-320/t CFR level, up by 5-8/t w-o-w. However, buyers continuously bidding at below $312-315/t CFR Qasim level.
  
  
• HMS 1&2 (80:20) from UAE and UK origin is being offered at $ 300/t CFR and $ 290/t CFR Qasim basis respectively.
  
  
• UAE origin HMS 1 (no gi ci) is being sold at $ 315/t CFR Qasim level.
  
  

Domestic steel market overview- Domestic steel market remained sluggish for the last couple of weeks due to which the price of billet has come down. However, rebar prices have remained stable.

Pakistan domestic steel prices as on 19th Oct'20

Outlook - With winters approaching, buyers will restock material before winter holidays, thus prices are expected to remain supported in the near term.