Pakistan: Imported scrap prices up on active bookings, domestic supply crunch

Pakistan's imported scrap trade picked up as buyers remained active in booking fresh slots for Sept-Oct'21 shipments. Most of the buyers procured actively as prices moved up due to limited scrap stock availability in the domestic market. That apart, they actively placed bookings ahead of the Muharram holidays.

"Around 10,000-12,000 tonnes (t) of containerised shredded have been booked in the last couple of days at $535-540/t CFR Port Qasim levels, including by Karachi-based major mills. Limited material availability in the domestic market led to hike in imported scrap prices," said a prominent scrap trader.

Recent offers

• Fresh offers for UK/EU-origin shredded were at $535-540/t CFR Qasim levels, moving up significantly by $5-10/t w-o-w.
  
  
• Meanwhile, buyers actively inquiring for UAE-origin HMS1/PNS grade scrap, heard offers at around $505-510/t CFR Qasim levels.
  
  

Some market players, looking for a price correction, were waiting for prices to come back to $520/t CFR levels. Not much effect of Turkey price correction was seen in the Pakistan market. Ferrous scrap import prices into Turkey have fallen further by a marginal $2-3/t in a fresh deal concluded recently, sources informed SteelMint. A bulk cargo was booked by an Aegean region-based steel mill. The cargo comprised 25,000 t of HMS 1/2 (80:20) and was sold at $453/t CFR Turkey.

Increased steel demand kept scrap buyers active in the market. Domestic good quality scrap (equivalent to shredded) offers are being cited at PKR 110,000-112,000/t exy-Punjab, registering a hike of PKR 2,000-4,000/t levels w-o-w.

SteelMint's price assessments of Pakistan market - 17 Aug'21

Pakistan mills lift rebar offers: Domestic steel market sentiments remain more-or-less the same as last week due to a slowdown in transactions in the month of Muharram. Holidays will be observed for the next two days on account of Muharram. The market will resume from Monday.

Later in the evening today, Pakistan'smajor steel mills like Amreli Steels and Agha Steel have raised their rebar offers by PKR 5,000-6,000/t ($30-36/t), effective from 17 Aug'21. Offers have increased amid a continuous hike in input costs. The new ex-factory rates for procuring deformed bar have been set at PKR 173,500/t exy, inclusive of taxes, sources told SteelMint.