Following the firm uptrend in the global market, buyers in Pakistan have been forced to accept a further increase with containerized shredded scrap prices exceeding $320/mt CFR in new deals.
Import offers for shredded scrap of European origin in containers in Pakistan have increased by $10/mt over the past week to $325-330/mt CFR. Having faced a scrap shortage in the local market caused by the lockdown, Pakistani traders have reportedly accepted the new prices.
Accordingly, a few cargoes for a total volume of 10,000-15,000 mt have been booked at about $323/mt CFR, while the previous contracts were done at $315-317/mt CFR a week ago. However, demand for scrap from local mills has remained unsustainable.
On the contrary, local prices have fallen to PKR 70,000/mt ex-warehouse compared to PKR 73,000/mt ex-warehouse at the beginning of September. The prices are including taxes. “If you are interested in getting any order now, you are forced to give good discounts. Unfortunately, local market sentiment is not so positive yet,” one trader in Pakistan stated.