Offers for imported shredded scrap in containers in Pakistan have remained relatively stable over the past week, while trade activity has still been close to zero amid the holiday lull globally. At the same time, although Pakistani customers are not yet fully concerned about the supply chain issues arising from the Red Sea crisis, most market insiders believe that it is inevitable that Pakistan will also face problems due to developments affecting cargo movements.
Accordingly, indicative offers for ex-EU shredded scrap in containers have been voiced at $430-435/mt CFR, the same as last week. No fresh bookings have been reported so far, while, according to sources, more and more Pakistani customers prefer to opt for ex-Middle East cargoes with a view to keeping supply chains healthy, “in the worst-case scenario”. “There have been no bookings over the past week due to the winter holidays and also because of the uncertainty over freight rate hikes and shipments,” a Pakistani trader told SteelOrbis.
“Customers's supply chain plans are expected to face abrupt adjustments due to the changes in shipping line routes, while shortages and unexpected inventory gaps are highly possible for February 2024,” another source said.
Meanwhile, domestic prices for local scrap and rebar have remained unchanged over the past week. In particularl, offers for local scrap equivalent to shredded are estimated at around PKR 165,000-170,000/mt ($592-610/mt) ex-warehouse, while the tradable price for local 10-12 mm rebar of grade 60 in Pakistan has remained at around PKR 255,000-257,000/mt ($915-922/mt) ex-works.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.70