Pakistan: Mills raise domestic rebar offers, imported scrap prices dip

Pakistan's major steel mills increased their rebar offers recently, effective from 31 Aug'21, reliable sources informed SteelMint. Offers for the G-60 grade rebar have increased amidst current market trends of rebar inventory shortage, and hike in costs of ferrous scrap.
However, imported scrap prices have inched down.

The new ex-factory rates for deformed rebar have been increased by PKR 6,000/t exy ($36/t) to PKR 178,000-179,000/t exy-Punjab, inclusive of taxes, while the deal continue to happen at PKR 171,000-172,000/t exw basis.

Our SteelMint assessment stands at PKR 171,000/t exw, up by PKR 2,000/t w-o-w.

SteelMint assessment of local scrap stands at PKR 110,000/t exy levels, unchanged w-o-w. There is not much local scrap available and the factories are actively procuring locally as well, sources informed.

Imported scrap trade active

Pakistan's imported scrap market remained active in booking fresh slots on increased demand. Currently, high demand was observed from Pakistani mills, due to low scrap inventory. Notably, demand has increased mostly from the northern area (Punjab/Lahore).

Due to the devaluation of the currency, buyers stayed in the market. The current exchange rate stands at PKR 166.7 to the dollar.

"Last weekend, active trade deals were reported for around 10,000 t of shredded, sold at around $522-525/t CFR Qasim basis. However, no deals were concluded yesterday, because the UK/EU markets were closed on account of the summer bank holiday," sources told SteelMint.

Recent offers

• Fresh containerised shredded scrap offers were reported at around $520-525/t CFR levels. Offers remained mostly unchanged on a w-o-w basis.
  
  
• UAE-origin HMS1/PNS is being offered at $505/t CFR levels but no confirmed deals were reported.
  
  

"Few scrap suppliers have started selling scrap at lower levels of $515-516/t, while the quality was not good and they are not sure if decent quantities can be booked. On the other hand, renowned traders are still holding back offers at $530/t CFR Port Qasim. Not many mills are active at the moment and are awaiting clearer price trends," said another major scrap trader.