With uncertain sentiments over the future price trend in the global market mounting lately due to situation regarding shipping in the Red Sea, import scrap activity in Pakistan has remained mostly muted this week, while most sellers, from Europe and the UK in particular, have been absent from the market due to the winter holidays.
Accordingly, offers for EU/UK origin shredding scrap heard at $430-435/mt CFR last week have disappeared in Pakistan this week due to announcements of war surcharge fees by the main shipping lines, while European suppliers have left the market for the winter holidays. However, offers for ex-Middle East scrap in containers have been heard at $435/mt CFR for shredded scrap, at $420/mt CFR for blue steel and at $400/mt CFR for HMS grade scrap, mainly the same as last week.
“Insurance premiums for cargoes and ships are skyrocketing and will be passed on to customers. It would mean that to ship cargo from Europe/UK for January would cost $40/mt more for Pakistan and also for India and Bangladesh,” an international trader said, adding, “Previously booked cargoes will be the first focus of attention in early January, which means any new business will have to wait before clarity comes regarding existing shipment plans for shipping in January 2024.”
Meanwhile, the tradable price for local 10-12 mm rebar of grade 60 in Pakistan have remained relatively unchanged, at around PKR 255,000-257,000/mt ($903-910/mt) ex-works. Furthermore, local scrap prices equivalent to shredded have been estimated at PKR 163,000-170,000/mt ($577-602/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 282.50