As anticipated, import scrap prices in Pakistan have increased this week, and, although new deals have been reported at higher levels, since bookings of ex-Europe material have resumed via the Suez Canal route, in general market insiders have continued to be extra cautious over the higher freight rates in new purchases. Besides, local demand has remained weak amid uncertain economic conditions due to the upcoming elections, coupled with the cold weather in some regions like Punjab.
More specifically, offers for ex-EU/UK shredded scrap in containers have been voiced at $435-445/mt CFR, against $435-440/mt CFR last week. Besides, according to sources, following several deals for ex-EU shredded scrap at $435/mt CFR, around 1,000 mt of the material has changed hands at $437/mt CFR. “There has been some revival in trade activity, but both customers and traders keep monitoring the impact of increasing freight rates on the back of the Suez Canal issue,” a Pakistani trader told SteelOrbis.
Meanwhile, suppliers from the Middle East have been offering a big range of products this week with the assurance of seven to 10 days’ shipment. Offers for shredded scrap have been voiced at $445-450/mt CFR, up by $5-10/mt week on week, while HMS grade scrap has been offered at around $410/mt CFR, according to sources.
Domestic prices for scrap and rebar have continued to rise this week as well, with offers for local scrap equivalent to shredded reaching PKR 173,000/mt ($618/mt) ex-warehouse, up by PKR 3,000/mt ($11/mt) week on week. Besides, the tradable price for local 10-12 mm rebar of grade 60 in Pakistan have settled at PKR 263,000-265,000/mt ($939-946/mt) ex-works, up by PKR 3,000-5,000/mt ($11-18/mt) over the past week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.98