This week, the main Pakistan-based rebar mills announced a new hike in offer prices citing the recent electricity price hike by PKR 7.91/unit, taking the new tariffs to PKR 24.82/unit, as well as the increase of 45 percent in gas prices, and the sharp devaluation of the Pakistani rupee.
Accordingly, this time local rebar producers in Pakistan have increased their rebar prices by around PKR 7,000/mt ($34/mt) since the beginning of June. As a result of the revision, 10-12 mm rebar of grade 60 is available at around PKR 228,000-231,000/mt ($1,106-1,120/mt) ex-works, “The continuous and unprecedented increase in the cost of energy and the devaluation of the national currency have forced rebar producers to increase prices further even though scrap prices have been falling,” a market insider told SteelOrbis.
Meanwhile, ex-UK import shredded scrap prices in containers have continued to decrease this week, falling to $488-500/mt CFR, down by $20-22/mt over the past week.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 205.3