Pakistan: Imported Scrap Prices Up in Recent Deals
Mining News Pro - In recent conversation with market participants, SteelMint learned that Pakistan steel market has observed few deals for imported scrap at further increased prices.
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According to Mining News Pro -In recent conversation with market participants, SteelMint learned that Pakistan steel market has observed few deals for imported scrap at further increased prices. Following rising global scrap prices suppliers have turned steady to offer materials at high prices. Imported scrap offers have moved up further by USD 8-10/MT on W-o-W basis.

In recent deals concluded in the beginning of the week, around 1000 MT of containerized Shredded scrap from Europe sold at USD 355/MT,CFR Qasim; UK origin premium Shredded sold at around USD 360-361/MT, CFR Qasim while offers from USA based recyclers are being quoted in the range of USD 362-365/MT, CFR Qasim.

Pakistan’s customers have increased inquiries for imported scrap for restocking before Muharram and it is likely that from the next week, importers may turn silent again for next 10 days. Market is likely to remain close on 20th-22nd Sept on Muharram holidays. While activities could slow down for more than a weeks’ period in all Islamic countries. Many of them pointed that Pakistan steel market may resume purchases again after 24th Sept.

HMS 1&2 from South Africa is being offered at around USD 350-353/MT, CFR and HMS 1 from UAE assessed at USD 352-355/MT, CFR almost stable W-o-W.

Buyers are looking for scrap on low inventories in hand but it is hard to find cheaper scrap anymore on rising global scrap prices, on the other hand sellers are holding back to offer at low prices and the outlook for upcoming Muhrram holidays retain importers to book limited trades” shared a source.

Local rebar market observes surplus supply and low demand - According to sources, local steel market in Pakistan is gradually improving however, the demand for finished steel hasn’t picked up yet. Everyone is waiting for issuance of funds from new government on major construction projects. Thus, market is witnessing surplus availability of finish steel but poor demand. Prices have moved up on improving demand and restocking for local billet (Bala), CC billet by PKR 2000/MT on W-o-W. While rebar prices corrected slightly on poor demand.

Local steel prices assessed as on 11th Sept’18 -

Average Prices, Ex-work Punjab and Lahore,inclusive of taxes

Particular

11th Sept`18

Last Assessment

W-o-W Change

PKR/MT

USD/MT

PKR/MT

PKR

Local Scrap (Equivalent to Shredded)

53,000-54,000

430-438

51,500-52,500

1500

Bala (Local Billet)

72,500-73,500

589-597

70,500-71,500

2000

CC Billet (Grade 60)

78,500-79,500

637-645

76,500-77,500

2000

Deformed bar (G-60)

94,000-95,000

762-770

95,000-96,000

-1000

Source: SteelMint Research

Local scrap prices move up on rising global scrap prices - Local scrap prices in Pakistan learned to have increased by PKR 1500/MT W-o-W following rise in global prices. Although local scrap remains cheaper over imported by around PKR 1,000-1,500/MT (USD 8-12) depending on the quality and location. However, local scrap seems not sufficient to fulfill whole demand. Pure super toke scrap equivalent Shredded is heard at PKR 53,000-54,000/MT, ex-works. While ship cutting steel plate prices in Pakistan assessed at PKR 74,000/MT.

Rumors on increased regulatory duties on steel - According to reports, the rumors on the surprising news of increased regulatory duties on steel and ship recycling into effect as soon as 1st October which was revolved around Pakistan’s mini budget kept market participants confused this week. However, no confirmation has received yet on it from the government.


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