Following several weeks of strong uptrend, this week has shown a slight drop in import scrap offer prices given quiet trade conditions in Turkey coupled with slack demand for finished steel in Pakistan, which also resulted in sharp drops for local rebars. At the same time, most Pakistani buyers have remained inactive, with only occasional deals reported at lower levels this week.
Specifically, by Wednesday, December 20, import offers for ex-EU shredded scrap in containers have been voiced at $432-435/mt CFR, down by $3/mt week on week, while several small deals have been reportedly done at $427-428/mt CFR, against deal prices at $433-435/mt CFR last week. Meanwhile, offers for ex-Middle East have been heard at $435/mt CFR, the same as last week. “It is still unclear if suppliers go down further in Europe, the situation will be clearer after new year holidays,” an international trader told SteelOrbis.
Meanwhile, given slow finished steel trade due to insufficient end-users’ demand in Pakistan, the tradable price for local 10-12 mm rebar of grade 60 in Pakistan have lost around PKR 10,000/mt ($36/mt) over the past week, reaching PKR 255,000/mt ($916/mt) ex-works. “The demand is unlikely to revive until mid-January 2024, so even if foreign scrap suppliers try to maintain their offers high, bids from Pakistani buyers will move down,” a market insider told SteelOrbis.
Local scrap prices equivalent to shredded have dropped as well, standing at PKR 163,000/mt ($585/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.41