US sells first bulk scrap cargo to Pakistan since 2017
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A US west coast ferrous scrap exporter has sold the first deep-sea bulk cargo to Pakistan in a lot more than two years.
Argus today confirmed the sale of a 30,000t deep-sea cargo of shredded and P&S scrap to a Pakistani mill from the united states west coast for March shipment, with shredded priced at $306/t cfr and P&S 5ft at $311/t.
The sale compatible about $271/t fob Los Angeles for shredded, based on estimated freight from the US west coast to Pakistan.
The majority price is near prevailing containerized shredded prices into Pakistan, which Argus assessed at $305-$310/t cfr on 21 February.
The sale could be the first-time since November 2017 that the united states has shipped a deep-sea scrap vessel to Pakistan, according to US Commerce Department data.
US ferrous scrap shipments to Pakistan in 2019 consisted totally of containers, reaching a historic most of 471,358t, up from 374,000t in 2018.
Between 2005 and 2017 Pakistan received three bulk vessels annually on average from the united states, Commerce data show.
The sale comes amid a worldwide shortage in containers, as a slowdown in manufacturing activity in China because of the impact of the coronavirus has sent container utilization rates for outbound vessels from China occasionally below 10pc.
The impact from reduced container availability has increased freight rates, squeezed margins for all of us and European exporters and has begun to restrict scrap shipments to all Asian markets.
"We may see more bulk sales from those reliant on containers because they're tightening," one US west coast exporter said.
While it may be the first time in over two years that Pakistan has bought a bulk vessel from the united states, others in your community, including India and Bangladesh, have purchased bulk from the united states with more frequency.
In 2019, India purchased around eight bulk shipments of ferrous scrap from the united states, while Bangladesh purchases were around triple that amount, according to Argus analysis folks export data.
Source: https://www.argusmedia.com
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