Pakistan: Imported scrap prices up by $20/t; festive mood limits trade

Pakistans' imported scrap market has slowed down since last week as trade activities have remained low due to the festive occasion of Eid. Despite this, imported scrap prices moved up further tracking global uptrends.

According to market participants, a few trades were heard at increased prices but due to the Eid holidays, the market would react slowly. On the other hand, prices in the Turkish scrap market also improved. SteelMint's assessment for UK/Europe-origin shredded containerized stands at $505/tonne (t) CFR, up $20/t against the end of the last week.

"Markets are closed till 16 May, hence no major changes are expected in domestic prices till then. The market picture will be clear by 17 May," a prominent participant reported to SteelMint.

Recent trades and offers:

• Buying inquiries for around 1,000 t of shredded from UK/Europe were heard at $510/t CFR Qasim level.
  
  
• Towards the end of last week, deals of 500-1,000 t of shredded scrap in containers were concluded at $490/t levels.
  
  

Domestic market silent during holidays: The local market in Pakistan is closed on account of Eid from 8 May-16 May. The market has remained more or less the same as in the previous week. The finished steel market has slowed down and no change has been observed in rebar and local scrap prices.

According to SteelMint, G-60 rebar prices in the Punjab region stand at PKR 132,000/t exw-Punjab, unchanged week-on-week (w-o-w).

Outlook:

Imported scrap prices are likely to increase further as suppliers are even heard to be offering at $515/t CFR PQ levels for containerized shredded.