Import scrap activity in Pakistan has remained muted as most buyers keep struggling to open letters of credit (LCs) with banks, while steel demand shows no signs of a significant recovery. At the same time, import offers for shredded scrap have been voiced at slightly lower levels as compared to last week, with only occasional deals heard in the market this week.
Specifically, most offers for ex-UK/EU shredded scrap in Pakistan have been voiced at $432-435/mt CFR, versus $435-440/mt CFR last week, while, according to market insiders, several customers have been negotiating new deals at $430/mt CFR. “After several deals for 4,000-5,000 mt in total reported to have been done at $435/mt CFR, this week only a few small batches have been bought, while in general the market is silent again,” a local trader told SteelOrbis.
Meanwhile, the prices for local scrap equivalent to shredded in Pakistan have been voiced at PKR 178,000- 183,000/mt ($619-637/mt) ex-warehouse, down by PKR 2,000-12,000/mt ($7-42/mt) week on week. “More interest has been seen in local scrap given problems with LCs for import materials recently,” a market insider said. Furthermore, tradable prices for local 10-12 mm rebar of grade 60 have been heard at PKR 255,000/mt ($887/mt) ex-works, down by PKR 5,000/mt ($17/mt) over the past week.
“The anticipated monsoon season in Pakistan next month only makes our forecasts for demand worse,” the representative of a steel mill stated.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 287.41