Pakistan Steel Mills Turn Active for Scrap Bookings before Ramadan Holidays
...
Steel mills have increased restocking activities for raw materials amid optimism on market which usually turns positive after Ramadan festival in Pakistan.
As per recent conversations with market participants, SteelMint learned that steel mills in Pakistan have turned active for scrap purchases before holidays for Ramadan. Offers for imported scrap moved up by USD 5-10/MT on W-o-W basis amid buyers turning desperate towards restocking the scrap at least a week's time earlier to Ramadan holidays. The festive month of Ramadan will be observed from 15 May'18 to 14 Jun'18.
Imported Shredded scrap prices in Pakistan bounced back above USD 390/MT levels. Current price assessment for Shredded scrap from USA is around USD 390-395/MT, CFR Port Qasim while few offers from UK origin recyclers are in the range of USD 388-393/MT, CFR Pakistan. Previous week containerized Shredded scrap was sold in the range of USD 382-387/MT, CFR Pakistan.
"Although not much trades have observed in the market this week, buyers are now turning desperate towards restocking raw materials well before Ramadan holidays. Also, positive optimism for Turkey's scrap buying has pushed imported scrap offers from sellers upwards" shared a source.
Offers for HMS 1 scrap from UAE stood at around USD 380-385/MT, CFR Port Qasim this week. These offers have increased marginally by USD 5-7/MT W-o-W as against previous week's assessment at USD 375-378/MT, CFR.
Ship breaking prices in Pakistan remain declining last week with no sale reported in the market. Prices assessed at USD 425/LDT for general dry bulk cargo and at USD 445/LDT for containers on CNF Pakistan basis.
Increasing demand for scrap pushed Pakistan billet prices slightly up again this week. Continuous casting Billet is being offered at PKR 78,000-79,000/MT and Commercial billet is at PKR 72,000-73000/MT, ex-plant in Pakistan.
While participants are more optimistic towards international markets as local prices are at par with an international market in Pakistan. Amid increasing buying inquiries, importers from Pakistan are likely to book decent volumes of scrap in next two weeks in Pakistan.
