Pakistan: Imported scrap prices rebound to one-month high in recent deals

Pakistan's imported scrap buyers continued to remain active this week. A few bookings for containers were heard to have been concluded at higher prices.

SteelMint's assessment for shredded scrap imports into Pakistan stands at $545-550/tonne (t) CFR, up by $5-10/t w-o-w. Prices have increased by over $15/t in the last two weeks. Also, the levels have touched a one month-high, as per data maintained with SteelMint.

"A few suppliers were targeting shredded offers at $555/t CFR levels. However, no deals have been concluded. Consequently, offers were reduced by $5-10/t to $545-550/t CFR at which a few bookings were done", said a scrap buyer.

Recent deals

• A trader sold around 1,500 t of UK-origin shredded at $548-550/t, CFR Pakistan.
  
  
• In another deal, 1,000 t of shredded was booked at $545/t, CFR Pakistan.
  
  
• Another trader sold 5,000 t of US-origin shredded at $535/t CFR Qasim basis.
  
  
• UAE-origin HMS 1 was quoted at $515-520/t CFR, registering a sharp increase of around $15-20/t w-o-w.
  
  

The Pakistani rupee (PKR) rebounded after seeing a constant depreciation over the last couple of weeks. Currently, the currency is trading at 176.47 levels against the dollar after hitting thed 177 levels last week.

Local scrap prices up further: Local scrap prices moved up further on supply shortage. Prices increased by PKR 1,000/t ($5/t) to PKR 123,500/t levels ($700/t) exy-Punjab for high grade scrap (equivalent to shredded). Many mills opted to import scrap over increased domestic prices.

Domestic rebar prices firm: Domestic steel prices remained mostly firm for G-60 (10-12mm) grade at PKR 188,000/t exw ($1,065/t), including taxes. However, few deals were even happening at lower levels of PKR 185,000/t exw ($1,048/t). Offers decreased due to weaker demand because of winters and heavy rainfalls across the country.

Pakistan domestic prices

Outlook: Steel sentiments are still subdued due to rains. However, global scrap prices are less likely to witness any correction given the restocking needs and demand from mills.