Pakistan: Scrap import prices up on supportive steel prices, tight domestic supply

Pakistan's containerised imported scrap prices have increased on a supportive secondary steel market. Lower inventories of ferrous scrap led to an increase in demand during the favourable construction season. Prices moved up marginally by around $5-10/tonne (t) in recent deals concluded at higher levels.

"Mills are running short of inventories and stronger re-bar prices have kept sentiments supported. Mills are active at the moment," said a Pakistan-based scrap trader.

A few mills have booked around 10,000 t of UK-origin shredded scrap in containers at $530-535/t CFR Port Qasim in the last two-three days for Oct'21 arrival, sources confirmed.

Recent offers-

• Fresh offers for UK/EU-origin shredded material are being quoted at $530-535/t CFR Qasim, up $5-10/t against last week.
  
  
• UAE-origin HMS1 prices remained stable at $500-505/t CFR Qasim.
  
  

Domestic re-bar prices continue uptrend

Domestic re-bar prices continued to move northward on the back of increased raw material prices. The downstream market is strong currently. However, a few market participants said that end-users are finding it tough to absorb successive price hikes in re-bar.

The Association of Builders and Developers of Pakistan (ABAD) has asked the government to take action against steelmakers for increasing the prices of their products.

"There is no impact of any ABAD statement on re-bar prices. Any decrease/increase in steel bar prices are only due to scrap prices and the demand-supply scenario," a market source told SteelMint.

Though a few market participants said that currently finished steel (G-60 re-bar) is being traded at PKR 171,000-173,000/t exw-Punjab basis, offers are at PKR 176,000-177,000/t exw.

SteelMint's price assessment for re-bar in Pakistan's Punjab region stands at PKR 174,000/t exw, with prices increasing up by PKR 3,000/t, w-o-w.

SteelMint's assessment of local shredded scrap stands at PKR 111,800/t exy, up PKR 1,800/t on week. Shortage of local scrap led to a hike in scrap prices.