Pakistan: Imported Scrap Prices Decline Amid Fall in Domestic Steel Prices
Mining News Pro - Pakistan Rupee (PKR) has appreciated in last two days` period by almost 5% to 122.6 against USD today from 128.8 earlier.

In recent conversations with market participants, SteelMint learned that Pakistan’s steel market has turn quiet but optimistic over devaluation of USD against Pakistan Rupee in last two days. According to Pakistan interbank market US dollar was traded as low as 124 while as per sources, bank has dropped it to 122 levels now against 128.8 levels two days ago.

Pakistan steel market surprised over currency appreciation just after national elections held on 25th July last week. Most of the participants got confused and kept seeking for clear direction while few participants pointed out that local market has turn silent now over the optimism of further downward corrections in steel prices in upcoming days.

Imported scrap prices move down in recent deals – In last couple of days few deals have concluded for imported scrap at corrected prices following dull sentiments in global markets. However, sellers have turned hesitant to offer much on recent currency appreciation. Buyers are likely to turn active by next week with improvement in finish steel demand in local market.

In the recent deals concluded, limited quantity Shredded 211 scrap heard to have sold at USD 355-357/MT levels for prompt delivery. While one of the leading steelmakers in Pakistan has booked Shredded in containers from UK supplier at USD 359/MT, CFR Qasim yesterday. HMS 1&2 from South Africa traded at around USD 345-347MT, CFR.

Offers for containerized Shredded scrap from recyclers in USA and UK remain almost stable on W-o-W at USD 360-363/MT, CFR Qasim. HMS 1 from UAE assessed at around USD 345/MT, CFR Qasim.

Months of negativity following increased budgetary taxes, currency depreciation and prevailing restrictions on tankers cutting permission in Ship cutting market has turned positive with new political turnover.  It is hoped in Gadani market that buying for dry units may resume at improved levels once permission to start cutting tankers comes through. Ship cutting prices remained unchanged at USD 400/LDT for general dry bulk cargo while have moved down USD 5 W-o-W to USD 425/LDT for containers and to USD 415/LDT for tankers on CNF Pakistan basis respectively.

Local steel prices decline - As an impact of currency appreciation and fall in demand during elections local billet, rebar and domestic scrap offers in Pakistan have come down by PKR 1500-2000/MT (USD 12-16) against last weeks’ report.

According to sources, average prices for local billet (Bala) stand at PKR 75,000/MT (USD 612) presently. For grade 60 CC billet prices gauged at PKR 84,000/MT (USD 685), ex-plant inclusive of taxes. Domestic scrap prices stand at PKR 55,000/MT (USD 449) levels now. While ship cutting plate prices assessed last at PKR 81,000/LDT.

Rebar prices in Punjab region are presently assessed at PKR 100,000-101,000/MT, ex-works and at PKR 103,000-104,000/MT levels ex works in Sindh region. All these prices are inclusive of local taxes.

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