Pakistan - Steel Market Remains Closed; Imported Scrap Offers Stable
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Most of the steel mills in Pakistan, including those based in Punjab and Sindh provinces are still closed due to lockdown, while mills in just one province - KPK province have recently resumed operations after government's permission.
After 14th April's notification, the construction industry and their allied industries were allowed to open in phases, steel demand again began to rise. Consequently, due to mills not operating, there is a shortage of steel in the market. Market sources stated that due to this, actual price levels can only be ascertained once the market is fully operationally.
Most sources maintain that mills in Punjab and Sindh will remain closed at least till 30th April, however few steelmakers may be allowed to resume in the next few days on the condition that all strict SOP are followed to protect their workers from covid-19 infection risk.
Imported scrap trades to Pakistan this week remained almost completely quiet, with no deals being reported in the recent few days. Offers of imported scrap to Pakistan also remained stable against last week, on the slow Turkish market after last week's surge.
SteelMint's assessment for Shredded 211 to Pakistan from UK/Europe stands at USD 275/MT CFR Qasim, similar to last week's levels. Few Shredded offers from US were reported at USD 270-272/MT CFR, although trades remained absent.
"The market direction is uncertain as Turkey turned silent after booking a good number of vessels last week. There is a possibility that shortage of scrap may arise once the lock-down eases. However mills are waiting for clear market direction before making any booking for bulk scrap vessel to Pakistan", shared a source from a Pakistan based steel mil
Few cargoes of imported scrap are still heard to have been stuck at Karachi port amid lockdown. Shortage of local scrap in the market was also reported by few sources,
