Import scrap activity in Pakistan has been mainly moderate, with many buyers holding back in anticipation of a clearer price direction. At the same time, those customers who have remained in the market have continued to push for additional discounts, and so the limited deals which have been reported this week have been signed at slightly lower levels.
According to sources, this week Pakistani buyers are reported to have booked around 3,000-5,000 mt in total of ex-EU/UK shredded scrap in containers at around $428-430/mt CFR, against $430/mt CFR last week. Besides, by Wednesday, April 24, most offers for shredded scrap have rolled back to the offer level reported two weeks ago - $425/mt CFR. “Although customers are hesitating to buy, many sellers do not want to move down amid the still rather positive mood in Turkey,” a market insider told SteelOrbis. Particularly, this week, in deals disclosed to Turkey’s import scrap market, it can be observed that deep sea scrap prices are still moving up, though at a very slow pace.
In the meantime, offers for ex-Middle East HMS grade scrap have been heard at $405-410/mt CFR, against $405/mt CFR last week.
In the local market in Pakistan, this week one of the leading rebar producers, Mughal Steel, has decreased its prices for 10-12 mm rebar of grade 60 to local customers by PKR 10,000/mt ($36/mt) to around PKR 251,000-253,000/mt ($905-912/mt) ex-works. Meanwhile, the indicative tradable offers for local rebar have been estimated at PKR 250,000/mt ($902/mt) ex-works, down by PKR 5,000-10,000/mt ($18-36/mt) week on week.
Offers for local scrap equivalent to shredded have been heard at PKR 155,000-160,000/mt ($559-577/mt) ex-warehouse, against PKR 160,000/mt ($577/mt) ex-warehouse last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 277.30