The efforts of Pakistan-based buyers to lower prices of shredded scrap have mostly failed to yield any results. Specifically, import offers of shredded scrap have remained notably higher compared to those in Turkey. As pointed out by suppliers, difficulties in searching for containers and other related challenges cause such high numbers. “Trying to buy full shredded cargo to Turkey, you would hardly pay lower than $500/mt CFR. Bulk sellers use their shredded to sell their HMS and, accordingly, the headline prices for each grade have different values to the buyer and the seller,” a trader reckoned.
Accordingly, import offers of shredded 211 scrap of European origin in containers to Pakistan have been voiced this week at $525-530/mt CFR, practically unchanged compared to the levels valid at the end of last week. Rare bookings of small lots have been fixed at $520-525/mt CFR. “Apart from freight issues, scrap sellers know that demand in Pakistan is good. Hence, buyers do not have any other choice but to accept the prices,” an official at a major Pakistan-based steelmaking mill stated. Meanwhile, offers of ex-UAE HMS 1 scrap for prompt shipment have been heard at $500-503/mt CFR Karachi, LC payment or CAD with 20 percent payment. In addition, the continued depreciation of the Pakistani rupee against the US dollar has made scrap imports to Pakistan costlier.
As a consequence, domestic prices of scrap equivalent to shredded have risen to PKR 111,000/mt ($672/mt) ex-warehouse versus PKR 109,000/mt ($663/mt) ex-warehouse valid at the end of last week. Meanwhile, prices for 12-32 mm rebar of grade 60 in Pakistan have increased further by PKR 3,000/mt ($18/mt) compared to the previous week to PKR 165,000/mt ($999/mt) ex-works. All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 163.606