Import scrap activity in Pakistan has remained slow this week amid continuous problems with opening letters of credit (LCs), coupled with slow finished steel demand. Thus, only some customers have continued to book material cautiously, while most importers have been holding back in anticipation of the announcement of the new federal budget this week, which could positively impact steel trade.
More specifically, offers for ex-UK/EU shredded scrap in containers have remained at $440/mt CFR, the same as last week, with several small deals for around 1,000 mt in total signed at $438/mt CFR this week, as sources report. “Currently, there are negotiations for a new deal at $440/mt CFR,” a local trader said.
“Trade is dull. Everybody is waiting for a new budget. Hopefully, it will be announced on June 9, and we will see what effects it will have on the steel sector,” a Pakistani trader told SteelOrbis.
Meanwhile, the prices for local scrap equivalent to shredded in Pakistan have remained unchanged as well, at PKR 190,000/mt ($664/mt) ex-warehouse. Besides, offers for local 10-12 mm rebar of grade 60 from mills have been stable over the past week, standing at PKR 260,000-262,000/mt ($908-915/mt) ex-works ex-Lahore and ex-Karachi, with only offers from one producer, Amreli Steel, heard at PKR 270,000/mt ($943/mt) ex-works in Karachi, according to sources.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 286.35