Import scrap prices for Pakistan have continued to soften this week, but only rare deals have been reported as local buyers’ price ideas have kept moving down. However, while some buyers have kept pushing their bids down, other have been less negative, expecting the trend to reverse in March given the more stable political situation in the country.
Specifically, ex-EU/UK containerized shredded scrap offers are at $430-432/mt CFR, against $440/mt CFR last week. According to sources, several deals have been reported at the abovementioned levels for around 3,000-4,000 mt in total. However, by Wednesday, February 28, some buyers’ bids have decreased to $425/mt CFR.
Meanwhile, suppliers from the Middle East, from Dubai in particular, have offered shredded and HMS grade scrap at $450-453/mt CFR and $415/mt CFR, respectively, mainly the same as last week. “Volumes offered by Dubai buyers are pretty low, with customers now questioning the decision whether it's ok to buy from Dubai or not due to the uncertainty regarding deliveries,” a market insider said.
“Slow buying by customers may continue due to the extended liabilities of utility bills and liquidity issues of customers. However, a new government was formed last week, which may help sentiments at least,” a Pakistani trader said.
In the meantime, some Pakistani buyers have been rather positive, expecting better local demand and consequently the reversal of the price trend in the short run. “The market was sluggish for the last two months due to political instability. But, finally, the government has been nominated, so hopefully the steel market will be more positive,” another trader told SteelOrbis.
At the same time, tradable local prices for rebar 10-12 mm of grade 60 have remained at PKR 265,000-270,000/mt ($950-967/mt) ex-works, while prices for local scrap equivalent to shredded have been assessed at PKR 165,000-170,000/mt ($591-609/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.08