Although more inquiries for import scrap have been heard in Pakistan during the past two weeks, mainly given the traditional restocking before the holidays, the Feast of Sacrifice in particular, by the middle of this week trade has been put on pause as market insiders are waiting for the federal budget announcement, which is supposed to bring significant changes to the steel industry.
More specifically, while most shredded offers for ex-UK/EU origin have remained at $425-430/mt CFR Pakistan this week, new deals were reported at $423-428/mt CFR at the beginning of this week, against $425-428/mt CFR last week. “The last deal was done at $425/mt CFR yesterday, but no further deals are done due to the federal budget and the upcoming holidays from the 16th onward for a week,” a Pakistani trader told SteelOrbis.
Offers for ex-UAE HMS grade scrap have been voiced at $415/mt CFR, down by $5/mt week on week.
According to sources, there are rumors that, with the announcement of the new budget, the sales tax rate may rise from 18 percent to 19 percent or even higher. Besides, market insiders have been discussing potential hikes in customs tariffs on steel scrap and ships for demolition.
Meanwhile, offers for local scrap equivalent to shredded have been reported at PKR 147,000-155,000/mt ($528-556/mt) ex-warehouse, the same as last week. Meanwhile, offers for local 10-12 mm rebar of grade 60 have settled at around PKR 252,000-255,000/mt ($905-915/mt) ex-works, down by PKR 3,000/mt ($11/mt) week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.55