Import scrap prices in Pakistan have continued to show a slight decrease this week, with a few deals reported at lower levels. At the same time, local rebar producers in the country have been forced to drop their offers due to severe economic issues and continuous fluctuations of the Pakistani rupee exchange rate.
More specifically, fresh offers for UK origin shredded scrap have dropped to $435/mt CFR, indicating a $5/mt drop week on week. However, according to market insiders, several deals for ex-UK shredded scrap have been signed at $430/mt CFR, and some at even $428/mt CFR. “Sellers try to maintain their offers. Buyers, however, are pushing for more discounts,” a market insider said.
Meanwhile, local rebar producers are reported to have decreased their offers for local 10-12 mm rebar of grade 60 to PKR 275,500/mt ($965/mt) ex-works. “The current economic situation and the unprecedented exchange rate of the PKR against the US dollar, along with the increase in utility prices, ensure business continuity has become a challenge, as this has a direct impact on our cost of production,” one of the Pakistani mills stated. The tradable prices have been reported at levels below PKR 260,000/mt ($910/mt) ex-works.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 285.51