Posted on 12 Jun 2023
The intake of imported scrap in Pakistan is being impacted by further delays in the issuance of letters of credit (LC). Offers were stable; however, and trade volumes were comparatively low last week, sources tell Kallanish.
Quotes for UK- and EU-origin shredded remained stable on-week at $435-440/tonne cfr Port Qasim last week. A few thousand tonnes were booked at $436/t cfr on Monday and Tuesday, but from Wednesday through Friday, deals were mostly concluded at $437-438/t cfr Port Qasim.
According to sources, 3,000-4,000 tonnes of UK- and EU-origin shredded were booked at $437-438/t cfr Port Qasim. On Friday, offers were noted at $440/t cfr Port Qasim.
Most deals for United Arab Emirates-origin shredded and PNS scrap were heard at $440-445/t cfr and $415-420/t cfr Port Qasim, respectively. Some UAE-origin fabrications were booked at $445/t cfr Port Qasim on Thursday.
A few tonnes of Poland-origin busheling were heard at $460/t cfr Port Qasim on Wednesday and Thursday. A few tonnes of Brazil-origin busheling scrap were booked at $452-454/t cfr Port Qasim on Thursday.
"The LCs issue has impacted the overall trade in Pakistan. ... Banks are not allowing the buyers to open LCs for large volumes," a trading source informs. "This is expected to improve in July after this fiscal year ends."
Domestic demand is low; hence the offtake of finished steel is down. Quotes for bala (local billet) are heard at around PKR 210,000/t ($732) ex-Lahore.
Offers for grade-60 rebar from tier-2 mills dropped to PKR 260,000/t ex-Lahore. Tier-1 and tier-3 mills are offering grade 60 at PKR 262,000-265,000/t and PKR 250,000-255,000/t ex-Pakistan, respectively.
"Raw materials have become costlier, and finished steel has become cheaper in Pakistan," a mill source informs. "There is a cash liquidity issue in Pakistan, and the same sluggishness has surrounded the nation as we saw last year."
Offers for ship scrap from containers were noted at $550/light displacement tonne (ldt). Scrap from dry bulkers and tankers is hovering at $510/ldt and $530/ldt, respectively.
Source:Kallanish
