Import scrap activity in Pakistan has remained muted due to the continuous slowdown in construction activities, while, according to sources, severe liquidity issues are hindering pricing and holding capacities. At the same time, import prices have kept falling this week, affected by the bearishness mounting globally and especially in the Turkish market.
Specifically, most import offers for shredded 211 scrap of UK and EU origin in containers to Pakistan have fallen to $415-425/mt CFR, against $430-432/mt CFR last week. According to sources, trade has been limited this week, with only an occasional deal reported at around $420/mt CFR, while most buyers’ bids have declined to below $415/mt CFR. “Ex-UK and ex-EU offers are moving down, but due to the long lead time these levels are not workable because the market is depressed and working at low levels because of unstable positions,” a Pakistani trader told SteelOrbis.
At the same time, although offers from the Middle East have been voiced in Pakistan at higher levels as compared to those from Europe and from the UK, according to sources, offers from the UAE and Bahrain have been rather workable because of the shorter lead time. “If you buy from the UAE/Bahrain, it takes only a week to have stock at yard,” another trader said. In particular, offers for shredded scrap of Dubai origin have been heard at $440/mt CFR, down by $10-13/mt week on week, while offers for HMS grade scrap have settled at $400/mt CFR, versus $415/mt CFR last week.
In the meantime, sales of finished steel as well as local scrap have been sluggish this week, with offers for local scrap equivalent to shredded reported at PKT 165,000-170,000/mt ($590-608/mt) ex-warehouse, the same as last week. Besides, offers for local rebar 10-12 mm of grade 60 have remained at PKR 265,000-270,000/mt ($948-966/mt) ex-works.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.47