Pakistan’s import scrap and steel markets have continued to face challenges this week as scrap inquiries remain low and steel mills keep reducing production. Besides, demand from end-users has been weak, affected by slow construction activity, coupled with high interest rates which keep impacting buyers’ confidence. Thus, deals for import scrap have remained occasional this week, signed with additional discounts.
This week, shredded scrap offers in Pakistan have dropped to $390-395/mt CFR, down by $5/mt week on week. At the same time, according to sources, new deals for small tonnages, around 2,000 mt in total, have been signed at $390/mt CFR, while bigger trades, for around 5,000 mt in total, took place at $388-393/mt CFR levels.
Meanwhile, offers for ex-UAE HMS grade scrap have declined as well, to $365/mt CFR, against $370-380/mt CFR last week, as sellers have been trying to generate interest among customers. Besides, offers for ex-UAE shredded scrap have been reported at $395/mt CFR.
“Middle East prices seem to be under pressure due to liquidity issues in Pakistan, while the Indian market may give this situation some support if restocking continues,” a market insider said.
At the same time, offers for local rebar of grade 60 10-12 mm have been voiced at PKR 255,000/mt ($/mt) ex-works, against PKR 255,000-260,000/mt ($/mt) ex-works last week. Besides, offers for local scrap equivalent to shredded have been estimated at PKR 145,000/mt ($/mt) ex-warehouse, mainly the same es last week. “Elections for the chamber of commerce were being held, so the focus was on the elections the entire week. Besides, customers are more optimistic for the new restocking wave of scrap from consumers pre-winter,” another source said.
