Higher prices for feedstock have continued to exert pressure on the positions of rebar producers in Pakistan. Subsequently, following the end-of-Ramadan holiday, Pakistani rebar mills have issued a price increase, aiming to offset higher input costs. However, it will take some time for end-users to accept new higher prices, market insiders believe.
Accordingly, at the beginning of the current week, local prices for domestic grade 60 rebar have increased by PKR 5,000/mt ($33/mt) compared to the previous offers valid before the Eid holiday to PKR 142,500-143,500/mt ($928-935/mt) ex-works. However, the workable levels for rebar in Pakistan are said to be hardly above PKR 136,000/mt ($886/mt) ex-works.
Meanwhile, this week offers of shredded 211 scrap of European origin in containers to Pakistan have been voiced chiefly at $520-525/mt CFR Qasim, versus $500-525/mt a week ago. Some sellers have started testing the Pakistani market with prices at $530-535/mt CFR Qasim. “Scrap suppliers maintain their bullish stance in pricing, but acceptance from Pakistani buyers has been slow right up to today. Normal business is expected to resume next week,” a Pakistan-based source commented with regard to the current situation. Meanwhile, local stockists have increased their prices of scrap equivalent to shredded to around PKR 94,000/mt ($612/mt) ex-warehouse, up by almost PKR 3,000/mt ($20/mt) compared to the beginning of May.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 153.051