Trade activity in the import scrap market has improved to some extent in Pakistan this week, with new deals heard at lower levels as most buyers keep pushing for discounts.
More specifically, most offers for ex-UK/EU shredded scrap in containers have been heard at $415/mt CFR, against $415-425/mt CFR last week, while new deals for around 3,000 mt in total are reported to have been signed at $407-415/mt CFR levels. “Some offers from yards were at $420/mt CFR, but they sold at $415/mt CFR,” a Pakistani trader told SteelOrbis. At the same time, more deals for ex-US shredded scrap in containers have been voiced at $405/mt CFR, down by $5-10/mt week on week.
Besides, ex-Dubai HMS grade scrap offers have settled at $390-400/mt CFR, with limited quantities available.
In the meantime, offers for local scrap equivalent to shredded have decreased to levels of PKR 160,000/mt ($580/mt) ex-warehouse and even slightly below, against PKR 160,000-170,000/mt ($580-616/mt) last week. Tradable prices for local 10-12 mm rebar of grade 60 have been reported at PKR 260,000-263,000/mt ($942-953/mt) ex-works, down by around PKR 5,000/mt ($18/mt) week on week.
“Pakistani customers have rather high expectations from the new government, but Ramadan has started, so most expect the markets to slowdown for at least a week,” a market insider said.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 276.03