Pakistan’s steel industry depicts a bearish response in importing steel scrap/raw material from Jan 2021 to May 2022. Prices of imported raw materials are declining in Pakistan; however, Pakistani importers are not importing due to certain factors.

Factors:

• Turkish importers are the trendsetters in the steel scrap market and have no remarkable imports.
• Pakistani rupee to US Dollar exchange rate is as high as 211.75.
• Shortfall of electricity
• Hike in Petroleum prices.

Trade-in Pakistan:

• Shredded:
  Container base UK-Origin shredded offer was at $435-440/MT CFR with a decline of $40/MT from $475-480/MT, and 6,000MT had booked at a new rate on 20th June 2022.
  Shredded prices were $528/MT CFR in 2021.

• Ferrous Scrap:
  Importing ferrous scrap had declined in a month from 270,000/MT in April to 160,000/MT in May 2022.

• Rebar Offer Prices in Pakistan:
  Few leading steel mills, i.e., Amreli Steel, Moiz Steel, and Mughal Steel, have again increased the rebar prices by PKR 5000/MT or $23/MT and reached PKR 236,000/MT or $1122/MT. Recently, on 14th June rebar prices had increased by PKR6000-7000/MT or $29-34/MT and were PKR231,000/MT.

Remarks/Conclusion:

The depreciation of the Pakistani rupee and a surge in petroleum & electricity prices has increased the cost of import & productivity, although imported raw material prices have declined. Pakistani importers are looking for bulk imports but waiting for Turkish importers. With the availability of funds from the IMF appreciation of PKR and Turkish imports, Pakistan’s import market will move towards the betterment.