With continued strong demand in their local markets, most foreign scrap suppliers have decided to shore up their positions in export destinations. Specifically in Pakistan, offers of shredded scrap of EU and UK origin in containers have risen by at least $10/mt within the past week.
Accordingly, this week offers of shredded scrap of EU and UK origin in containers to Pakistan have been voiced mostly at $535-540/mt CFR Qasim, having rebounded to the levels which prevailed in the middle of June. Although workable prices are reported to be not higher than the low end of the range, some sellers are said to have already started testing the market with offers at $545/mt CFR Qasim. While one major Pakistani Sindh-based rebar mill booked a few lots of material at $536/mt CFR, another Pakistani Punjab-based producer purchased 1,000 mt of shredded scrap from the UK at $540/mt CFR, for July shipment. Offers of HMS from the UAE have been heard at $495-500/mt CFR Qasim.
On the heels of the rise in import scrap prices, local sellers of domestic scrap equivalent to shredded increased their prices to PKR 97,800/mt ($618/mt) ex-warehouse by the end of the current week, against PKR 95,200/mt ($601/mt) ex-warehouse a week ago.
Meanwhile, local offers for domestic grade 60 rebar have remained unchanged at PKR 149,000-150,500/mt ($941-951/mt) ex-works, following the increase in prices a week ago by PKR 4,000-5,000/mt compared to the previous official offers. In reality, tradable prices are said to be not higher than PKR 148,000/mt ($935/mt) ex-works. “The prices in Pakistan are still cheap as steelmakers are selling their old stocks at below market price. With input costs at current levels, sales at PKR 158,000/mt would make sense,” an official at a rebar mill commented.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 157.89