Pakistan: Imported Scrap Prices Remain Stable in Recent Trades
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SteelMint learnt in recent conversations with market participants that the imported scrap offers to Pakistan had moved up considerably over the last week after global prices started the uptrend in several Turkish deals since the latter half of last week. Trade activities in Pakistan have been average, with no aggressive procurement expected in the coming weeks amid sufficient raw material inventories available with most mills, in addition to slow steel sales. Domestic finished steel prices inched down for another week on low demand.
SteelMint's assessment for containerized Shredded 211 scrap from UK/Europe stands at USD 260-265/MT, CFR Qasim, up USD 7-8/MT against offers in beginning of last week however against closing of last week, offers have remained unchanged.
Some bookings from UK suppliers were reported at around USD 265/MT, while few deals of European (France/Poland) origin were reported at around USD 260/MT CFR. Global suppliers have been trying to raise prices further, however, buyers are resisting against the same.
Amid the news of the USA raising Tariffs for Turkish finished steel import, the market is carefully watching the effect of the same on Turkish scrap import activities.
Offers for imported HMS scrap has remained relatively stable over the week. UAE origin HMS 1 (super) still remains in the range of USD 260-262/MT CFR, remaining on par with Shredded, while European origin HMS 1&2 (80:20) offers have inched up to USD 245-250/MT CFR amid limited interest, while only scarce deals for HMS are being reported these days.
Domestic rebar prices inch down - Persisting low demand of finished steel has led to many mills across both the regions to cut down their production for Steel bars, while Rebar prices continued the downtrend, successively falling for several weeks now.
Local scrap and billet prices also dropped by PKR 1000/MT and PKR 2000/MT w-o-w, with Local scrap eq to shredded being offered at PKR 62,000/MT ex-works.
In the northern region, rebar average selling prices were reported at around PKR 108,000-109,000/MT, ex-works (USD 694 - 701), down by PKR 1000/MT on a weekly basis, while Southern (Karachi region) steel mills have dropped their offers to PKR 109-110,000/MT ex-works.
| Particular (Average Selling Prices) | 15-Oct'19 | Last Assessment on 9-Oct'19 | Change W-o-W |
| PKR/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 62,000 | 63,000 | -1000 |
| Bala (Local Billet) | 81000 | 83000 | -2000 |
| CC Billet (Grade 40) | 86,000 | 88,000 | -2000 |
| CC Billet (Grade 60) | 88,000 | 90,000 | -2000 |
| Deformed bar (G-60), Ex-Punjab/KPK | 109,000-110,000 | 109,000-110,000 | -1000 |
| Deformed bar (G-60), Ex-Sindh (Karachi) | 110,000-111,000 | 110,000-111,000 | -1000 |
Source: SteelMint Research
