The main Pakistan-based rebar mills have announced a new hike in offer prices, citing energy tariffs and the depreciation of the national currency. “The high number of tariffs in Pakistan, coupled with exorbitant energy prices have exerted pressure on local rebar mills,” an official at a major Pakistan-based rebar mill stated. Meanwhile, scrap offers have declined slightly. According to market sources, the current levels of shredded 211 scrap offers of European origin are voiced mostly at $560/mt CFR, which corresponds to the low end of the range valid last week, which was $560-565/mt CFR. “For me, the producers are aiming to latch on to the shortage of scrap in the global market, as other reasons now are not relevant. Specifically, scrap offers to Pakistan have decreased slightly compared to last week, while the conversion rate of the Pakistani rupee to the US dollar has been more or less stable at around PKR 175 to 171 lately,” a Pakistan-based trader commented with regard to the recent market developments.
Nevertheless, on November 1, local rebar producers in Pakistan have increased their rebar prices by a further PKR 5,000/mt ($29/mt). As a result of the revision, 10-12 mm rebar of grade 60 in the Karachi region is available at PKR 188,500-192,500/mt ($1,106-1,129/mt) ex-works, while in Lahore domestic rebar is offered at PKR 186,000-190,000/mt ($1,091-1,114/mt) ex-works.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 170.602