Pakistan: Imported scrap prices up as mills restock cargoes ahead of winters

With winter approaching, major mills in Pakistan have become active and would likely keep booking, despite high offers. Interestingly, the offers have increased by around $10/tonne (t) w-o-w.

"Pakistan's scrap market sentiments turned positive towards the close of last week with major mills becoming active in booking for December shipments. This is a restocking measure ahead of prices moving up in winter," a Pakistan-based major scrap trader highlighted to SteelMint.

Recent deals and offers

• 10,000 t of UK/EU-origin containerised shredded scrap was booked by a Pakistani steel mill recently at $565-568/t CFR Qasim for Dec'21 shipment. Another 10,000 t of shredded scrap was booked prior to this at $555-560/t CFR towards closing of last week.
  
  
• In another fresh deal, around 1,500 t of EU-origin containerised shredded was booked at $560/t CFR Qasim basis, said a major steel producer.
  
  
• Fresh offers are being quoted at $565-570/t CFR Qasim levels, up by $5-10/t levels w-o-w.
  
  

PKR extends losses: The Pakistani rupee continued to extend losses against the dollar to reach PKR 171.3 in the currency exchange market. It moved up slightly from the previous week's PKR 170.15 levels.

Domestic steel prices remain supported: Domestic steel market prices remained on the higher side for the most-preferred G60 rebar despite hike in offers last week by PKR 5,000/t. SteelMint assessment for G-60 grade rebar stands at PR 186,000-188,000/t exw levels.
Domestic scrap prices in Pakistan have gone up further by PKR 2,000/t to PKR 123,000/t exy-Punjab for shredded-equivalent scrap.

Outlook
Trade sources expect imported scrap inquiries to remain strong and prices to also remain supportive.