Import scrap activity in Pakistan has remained muted due to the continuous slowdown in construction activities caused by adverse weather conditions, along with the increasing number of Covid-19 cases which have exerted additional pressure on overall market activity. Only some customers have continued to book material cautiously, while most importers have been holding back in anticipation of lower prices. Due to the lack of interest from customers, prices for scrap have lost around $5-15/mt over the past week.
Import offers for shredded 211 scrap of European and UK origin in containers to Pakistan fell to $545-550/mt CFR, down $5/mt over the past week. After a few deals for ex-UK/Europe shredded scrap were signed at $549-550/mt CFR Qasim last week, the material has changed hands at $543-547/mt CFR this week. A small batch of ex-US shredded scrap is said to have been booked at $540/mt CFR, down $15/mt week on week, while “now customers are bidding at $535/mt CFR for further bookings,” a market insider told SteelOrbis. Ex-UAE HMS scrap offers have dropped to $510-515/mt CFR Qasim, down $10/mt within the past week.
Currently, local prices for 10-12 mm rebar of grade 60 in Pakistan are at PKR 187,000-188,000/my ex-works ($1,054-1,059/mt), with deals signed below the lower end of the abovementioned range. “Rebar production is slow because of slow sales. Mills dropped prices by $28/mt last week and eventually have been selling at lower rates just to deplete stocks. Maybe next week the weather will be better, and some business activity will start,” another Pakistan-based source commented.
Meanwhile, the price for local scrap equivalent to shredded in Pakistan has dropped slightly to PKR 119,000/mt ($671/mt) ex-warehouse this week, down PKR 200-1,000/mt ($1-6/mt) compared to the levels valid a week before.
“Further downward price corrections are expected. Nevertheless, mills are expecting stronger construction activity in February amid better weather conditions, which may bring some optimism back into the market,” a Pakistan-based trader stated.