Although some foreign suppliers have made attempts to increase their offers slightly to Pakistani buyers, most deal prices for imported shredded scrap in containers to Pakistan have remained at relatively the same levels as compared to last week, as customers have refused to accept higher offers given the still slow finished steel demand in the country.
Specifically, several deals for ex-EU/UK shredded scrap in containers have been voiced at $412-415/mt CFR, mainly the same as last week. According to sources, most offers are still at $415/mt CFR. However, some suppliers have been bullish trying to hike their offers to $425/mt CFR, which is considered unworkable in Pakistan so far. “There is some restocking in Pakistan, but deals remain occasional, as there are delays due to the letter of credit (LC) issue, coupled with slack end-user demand,” a Pakistani trader told SteelOrbis.
Meanwhile, according to sources, this week there has been some increase in demand for local scrap, which has resulted in higher offers for domestic scrap equivalent to shredded. In particular, offers have increased by around PKR 5,000/mt ($17/mt) to around PKR 165,000-170,000/mt ($577-594/mt) ex-warehouse. Meanwhile, local prices for 10-12 mm rebar of grade 60 have been voiced at PKR 265,000/mt ($926/mt) ex-works on average, up by PKR 5,000/mt ($17/mt) week on week as well.
All prices on Pakistani based rupee include 18 percent VAT.
$1 = PKR 286.16