Trade activity in Pakistan’s import scrap market has been moderate this week and throughout all January mainly due to the upcoming February elections. At the same time, finished steel demand has been lacking strength given the absence of significant infrastructure activities currently in Pakistan. As a result, new deals for imported scrap have remained occasional this week.
Offers for shredded scrap in containers for EU and UK origin have been voiced at $440-445/mt CFR, against $435-445/mt CFR last week. Meanwhile, despite slightly higher offers, market insiders have reported deal prices for ex-EU/UK materials still at $435-440/mt CFR, the same as last week. Besides, according to sources, this week a deal for ex-US shredded scrap is reported to have been done at $435/mt CFR. Offers for ex-EU/UK HMS I/II 80:20 have settled at $410/mt CFR, the same as last week.
Meanwhile, offers for ex-Middle East HMS I/II 80:20 scrap have been voiced at $410-415/mt CFR, mainly the same as last week, and, although a few deals have been signed at the abovementioned levels, sources said that most Pakistani customers are unsure about booking ex-Middle East scrap due to issues with export duty.
In the meantime, offers for local 10-12mm rebar of grade 60 have been voiced at above PKR 268,000/mt ($958/mt) ex-works, up by PKR 3,000/mt ($11/mt) week on week. Besides, offers for local scrap equivalent to shredded have remained at around PKR 170,000/mt ($608/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.78