Delaying bookings of import scrap due to the uncertainty as regards the future global price trend, Pakistani steelmakers have been seeking to meet their needs locally within the past week. Subsequently, with supply of local scrap equivalent to shredded tightening, traders have been aiming to get higher prices. In particular, by the end of the current week, the prices for local scrap equivalent to shredded have reached PKR 130,000-133,000/mt ($740-755/mt) ex-warehouse, up PKR 2,000-5,000/mt ($11-28/mt). “Local scrap is very tight now as mills have cleaned out all their inventories. Hence, it is the turn for import buying activity soon, I believe,” a Pakistan-based source commented. “Actually, buying remains quite strong in Pakistan for the time being. However, as the government is increasing interest rates, it might further dampen the economy, I fear,” an official at a major Pakistan-based steel mill stated.
Meanwhile, import offers of shredded 211 scrap of European origin in containers to Pakistan have been heard this week at $555-560/mt CFR, up $5/mt compared to the levels valid a week ago. Taking into account the cumulative effect of all taxes in Pakistan, which is assessed to be around 25 percent, the local price for shredded 211 scrap of European origin in containers is approximately $690-700/mt. Prices for ex-Dubai HMS scrap have moved sideways over the past week and are now voiced at $520-525/mt CFR.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 176.268