More inquiries have been emerging in Pakistan’s import scrap market and, although buying activity has not yet improved significantly, market sources believe it may increase in the coming weeks amid buying before the Feast of Sacrifice. At the same time, the price trend has been lacking a firm direction since, while most import offers for shredded scrap in containers have been voiced at relatively unchanged levels compared to last week, some market sources have reported sellers’ attempts to go higher. However, new deals have been reported with additional discounts this week.
More specifically, according to market sources, most offers for ex-EU/UK shredded scrap in containers have been voiced at $420/mt CFR, relatively the same as last week. However, while some foreign suppliers are reported to be offering their materials at above $420/mt CFR, several deals for ex-EU scrap have been signed at $415-417/mt CFR this week. “Yesterday, a deal for 1,500 mt of ex-European shredded scrap was reported at $417/mt CFR, but a few more have already been reported at $420/mt CFR level,” an international trader told SteelOrbis.
Furthermore, offers for mixed HMS and PNS from the UAE have been reported at $410-412/mt CFR, the same as last week, while buyers’ price ideas have been voiced at $405-408/mt CFR levels.
Meanwhile, the local market has stabilized and rebounded as well by around PKR 5,000-8,000/mt ($18-29/mt) to PKR 155,000-158,000/mt ($556-566/mt) ex-warehouse for scrap equivalent to shredded, while market insiders report that distressed sales seem to have vanished, which will eventually support the market.
At the same time, market participants have been actively discussing the recent increase in the local rebar prices of one of the major steel producers, Mughal Steel, by around PKR 8,000/mt ($29/mt) amid “the shortage of raw materials coupled with the current poor economic conditions in Pakistan”, as one source stated. Other local rebar producers have not announced official rises so far, though most believe “they will follow suit”, while tradable prices for local 10-12 mm rebar of grade 60 have settled at around PKR 255,000/mt ($914/mt) ex-works, up by PKR 5,000/mt ($18/mt) week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.99