Pakistan Steel Mills Book 40,000 MT Bulk Scrap Cargo

Pakistan's imported scrap market has resumed momentum with another bulk cargo booking made within two weeks. SteelMint learned from its credible sources that a 40,000 MT bulk Shredded scrap cargo has been booked collectively by Pakistan based mills from a US west coast supplier for Apr'20 shipment. The cargo has been booked by a consortium of seven companies and the deal value is reported around USD 297/MT, CFR Pakistan.

This is the second bulk scrap booking made in the last two week's time for Pakistan. Prior to this, Mughal Steel, a top Steelmaker from Punjab region, booked a 30,000 MT of bulk cargo, comprising of 26,000 MT of Shredded scrap at USD 306/MT, CFR and 4,000 MT of P&S at USD 311/MT CFR Qasim, from a USA recycling yard, for March shipment. This bulk scrap booking was reported to Pakistan after a gap of over two years.

Which all factors have resulted in increased bulk bookings of ferrous scrap?

-- Hike in container freight rate has lowered interest of containerized scrap bookings. Halt in activities after the coronavirus outbreak in China, negatively impacted the vessels leaving China. This led to reduced container availability and in turn hike in freight rates.

-- Congestion at ports and major shipping lines resulted in delayed movement of containers, which in turn led to a shortage of scrap

-- Less stock of scrap with Pakistan mills is also another reason which is making way for bulk scrap bookings.

Pakistan based trade sources indicated that few more bulk scrap deals are under negotiation.