Pakistan: Imported scrap offers surge tracking global price gains
- Imported scrap offers up by $20/t w-o-w
- Domestic steel prices likely to move up further
- Pakistan's ferrous scrap imports largely stable in Jan'21
Imported scrap offers to Pakistan have moved up further by around $15-20 w-o-w. However, trades remain muted as people are hesitant in the current volatile market. Buyers are not purchasing extra stocks, for the time being, SteelMint learnt.
SteelMint's assessment for the UK/EU origin containerised Shredded now stands at $468/t CFR levels, increasing significantly by over $20 w-o-w.
Last deals in containers for 5,000 t of UK origin shredded scrap have been concluded at $450-455/t CFR Qasim towards the closing of last week. However, deals are yet to be concluded at increased offers, credible sources have highlighted to SteelMint.
- Imported scrap offers for shredded have moved up significantly by $20-25 as compared to the beginning of the last week and currently stand at the range of $465-470/t CFR Qasim basis.
- Fresh offers for Dubai origin HMS1 are being cited at $440/t CFR Qasim level, up by $15-20 w-o-w.
No one is buying at the moment, mostly buyers have shifted to domestic sources, shared a Karachi-based scrap buyer.
Domestic rebar offers gain further: Domestic steel prices have moved up further as compared to last week, while market insiders believe that prices are low at the moment. It is expected that prices will rise this week by a further PKR 2,000-3,000/t basis and are likely to go up to PKR 150,000/t levels in the near term. Steel market turned dull in the last ten days as it was the electricity payment period which causes cash liquidity issues.
The month of Feb is traditionally slow for steel consumption. After March construction activities hit a peak which will increase steel consumption. According to SteelMint assessment, prices for G-60 rebar stand at PKR 127,000/t exw, up by PKR 1,000/t w-o-w. Whereas, other substitutes such as Bala and billet prices have increased w-o-w.
- Pakistan's ferrous scrap imports remain largely stable in Jan'21: South Asia's prominent scrap importer - Pakistan recorded imports of 0.44 mn t in Jan'21, largely stable as against 0.47 mn t a month ago, as per the data maintained with SteelMint.
- Top market player reveals the Q4 CY'20 outcome: Pakistan's one of the top market players Mughal steel has announced it's Q4 CY'20 result. The company posted a net profit of PKR 1,046 mn against an estimate of PKR 913 mn.
Outlook: Pakistan-based steel mills are expected to raise rebar offers on the back of hike in imported scrap prices.