After a 15-day gap, the prices of galvanised steel products in international market shot up again by $50 per ton on the back skyrocketing zinc prices at London Metal Exchange (LME), importers said on Monday.
They said that galvanised steel products prices have touched the ceiling of $800 per ton during the last 15 days and the local importers are sitting with their fingers crossed these days. "We have been compelled to remain on the sidelines," said a local importer, adding that the rising zinc prices at LME had pushed steel prices upward.
"Zinc is currently tagged at $4200 per ton from $3600 per ton one-and-a-half month back, registering a jump of $600 per ton during these 45 days," a trader said. "The rising steel prices on the international front have extremely disappointed the local importers, who were anticipating a steep decline in world steel prices during September and October," said a Karachi-based importer.
"Not a single import order has been placed at the rate of $800 per ton," a leading importer said, adding that local importers are closely monitoring the fluctuation in the international market and they would re-enter the market when the prices would come down by $50 per ton to $750 per ton.
"There is no viability of trade with China because $800 per ton material would cost here around Rs 63,000 per ton, and that is why we are reluctant to procure material at such high cost," he added. He said that European galvanised steel products are still being offered at much cheaper rates, but importers prefer Chinese material.
"Actually, the European material is spangleless; that is why it is still being offered at $675 per ton," said an importer. He added that China's material has spangles on it, and that is why the importers prefer to book that material.
Importers said that $750 per ton price is workable and viable for trade and they are anticipating a $30 per ton decline in galvanised steel products prices in the next couple of days. Since Pakistan Steel (PS) material is being consistently offered at much lower rates, steel merchants are getting material from there, according to their requirement.
"There is no scarcity of galvanised material in the domestic market because previous import deals of $720 per ton are being actualised. Therefore, we (importers) do not want to take risk of getting costly material," he elaborated. "We are not in a hurry," said another importer, adding that construction activities across the country are dormant these days and people usually avoid starting construction of their houses or any other project. Therefore, we would import the material when the prices would decline."
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