Import scrap prices in Pakistan have remained largely unchanged over the past week, while most buyers have continued to shy away from concluding deals, though local rebar prices from the largest producers have increased slightly this week amid continuous fluctuations in operational costs.
Specifically, most offers for ex-EU/UK shredded scrap in containers have been voiced at $415/mt CFR, the same as last week, though several suppliers have been offering at $418-420/mt CFR. At the same time, according to sources, a deal for around 1,000 mt of ex-EU shredded scrap has been signed at $413/mt CFR, while another batch of ex-UK materials has changed hands at $415/mt CFR. “Deals remain occasional amid letter of credit issues coupled with low construction activities, weak rebar sales, and uncertainly over the national currency,” a market insider told SteelOrbis.
At the same time, this week leading rebar producers, including Mughal Steel, Union Steel Rebars, Platinum Steel Mill, Agha Steel and Amreli Steels, have increased their offers for 10-12 mm rebar of grade 60 to PKR 269,000-270,500/mt ($943-948/mt) ex-works, up by around PKR 2,000-5,000/mt ($7-18/mt) week on week, citing the shortage of raw materials along with challenging economic conditions in Pakistan, though, according to sources, the tradable price level for local rebar has remained at around PKR 265,000/mt ($929/mt), the same as last week.
Local scrap prices equivalent to shredded have settled at PKR 170,000-175,000/mt ($596-613/mt) ex-warehouse, up by PKR 5,000/mt ($18/mt) over the past week.
According to sources, demand from the construction sector is expected to slow down in December amid slow construction, affecting the import scrap trade in the coming period. Besides, the national currency fluctuations remain another issue for scrap buyers. Notably, the Pakistani rupee is expected to continue its downward trend and reach a historic low of 350 to the dollar by the end of 2024, according to a report by BMI Research, a Fitch Solutions company.
All prices on Pakistani based rupee include 18 percent VAT.
$1 = PKR 285.41