Import scrap offers to Pakistan have continued to move up at a rapid pace, rising by $15-20/mt week on week, and up by $40/mt since the beginning of August. Although general business activity has remained muted, several bookings were reported at higher levels amid buyers’ fears of further price increase. Besides, continuous gains in the national currency have supported new scrap bookings as well as urging local rebar producers to decrease their prices.
Specifically, after deals for ex-EU shredded scrap in containers were reported at $490/mt CFR on Friday, August 12, the material has changed hands at $500/mt CFR this week. Meanwhile, offers for ex-UK/EU shredded scrap have settled at $500-505/mt CFR. “Some deals happened at a maximum $500/mt CFR, but no one agreed on a higher price,” a Pakistani trader told SteelOrbis. Meanwhile, offers for ex-UAE HMS grade scrap have been voiced at $525/mt CFR Pakistan. “No sales were reported for ex-UAE scrap in Pakistan as all material is going to India at $500/mt CFR levels. Ex-UAE offers are higher in Pakistan due to the freight difference between India and Pakistan,” a market insider said.
Meanwhile, prices for 10-12 mm rebar of grade 60 in Pakistan have decreased by around PKR 7,000-10,000/mt ($33-47/mt) over the past week to PKR 231,000-233,000/mt ($1,077-1,087/mt) ex-works. “Since the start of August 2022, the Pakistani rupee has been continuously appreciating against the US dollar. Therefore, steel mills are pleased to pass on the benefit of the rupee’s appreciation to its customers,” one of the biggest Pakistani producers stated.
All prices on Pakistani rupee basis include 17 VAT.
$1 = PKR 214.46