Pakistan: Imported Shredded Scrap Offers Up; Steel Trades Remain Slow
...
SteelMint learned in recent conversation with market participants that imported scrap market in Pakistan has started witnessing inquiries from buyers. Although local market remains still slow, it has started clarifying since yesterday.
Containerized Shredded 211 from Europe and UK heard in the range of USD 360-365/MT, CFR Qasim. While offers from leading recyclers are being quoted in the range of USD 364-367/MT, CFR. Few trades for around 4000 MT Shredded scrap were concluded towards closing last week at USD 357-359/MT, CFR Qasim but hardly any of the traders is available at these levels now.
Dubai origin HMS 1 assessment remains in the range of USD 337-340/MT, CFR Qasim. However, South African HMS 1&2 assessment remains still at around USD 347-350/MT, CFR Qasim.
Local steel prices to find support - Amid some protests and 'law and order' situation prevailing in few parts of the country, the trade activities have remained on lower side. However, the scenario is likely to improve in coming days with rising inputs cost following hike in gas and electricity charges. This is expected to push prices upwards in the coming week, shared a source.
Local steel price assessment as on 5th Nov'18 -
| Average Prices, Ex-work Punjab and Lahore, inclusive of taxes | ||||
| Particular | 05-Nov'18 | Last assessment on 29th Oct'18 | W-o-W Change | |
| PKR/MT | USD/MT | PKR/MT | PKR | |
| Local Scrap (Equivalent to Shredded) | 58,000 | 434 | 60,000 | -2000 |
| Bala (Local Billet) | 77,000 | 576 | 78,000 | -1000 |
| CC Billet (Grade 40) | 83,000 | 621 | 84,000 | -1000 |
| CC Billet (Grade 60) | 84,500 | 632 | 85,000 | -500 |
| Deformed bar (G-60) | 100,000-101,000 | 748-755 | 101,000-102,000 | -1000 |
Source: SteelMint Research, USD/PKR = 133.7
Local steel market has reopened yesterday after almost a weeks' break and has turned fully operational now. Local prices plunge slightly because of restart after long period however, many of the participants expect for good demand along with improvement in prices in next couple of days.
At current prices the margin remains very low along with depreciating rupee and increasing electricity and gas input costs, following which two rolling mills in South region have already shut down.
Market participants are expecting that with a news of financial aid from China and UAE in addition with IMF market may observe stability in economy and the currency won't depreciate further.
Rebar prices almost stable amid limited movement - In Punjab region, deformed rebar assessed in the range PKR 100,000-101,000/MT, ex-works. While in Sindh region at PKR 104,000-105,000/MT, ex-works. All these prices are inclusive of taxes. Domestic scrap prices equivalent to Shredded reported further softening.
Deformed premium G-60 rebar prices heard in the range of PKR 104,000-106,000/MT, ex-Karachi while local deformed bar assessed at PKR 103,000/MT, ex-works in Southern region inclusive of taxes.
Ship breaking market observes sliding in ship plate prices - According to reports, Gadani based recyclers witness sharp fall in local steel ship plate prices by about USD 20-25/LDT as 16 mm plate prices assessed at PKR 77,000/MT now. End buyers are hesitant to buy presently as current breaching levels are troublesome to reach with expensive inventory yet to sell. Ship breaking prices have been reported at USD 430/LT for dry bulk cargo, at USD 450/LT for containers and USD 440/LT for Tankers with diverting all sales mostly to the other dominating markets.
