Market sentiment in Pakistan's import scrap sector remains subdued due to global scrap price corrections. However, trading activity has picked up this week, with most deals for ex-EU shredded scrap reportedly concluded at further discounted levels.
Specifically, following several deals for at least 5,000 mt in total of ex-EU shredded scrap in containers signed at $380-382/mt CFR last week, this week new deals have been reported at $375-378/mt CFR level. In particular, at least two deals for 2,000 mt each have been signed at $375/mt CFR this week, following more deals at $376-378/mt CFR for smaller quantities. At the same time, according to sources, most offers for ex-EU/UK shredded scrap have moved to $373-375/mt CFR, against $385/mt CFR last week.
“The Export Facilitation Scheme (EFS) issue affecting non-ferrous imports remains unresolved. Rumours suggest that duties may need to be paid for uncleared containers, although some market participants mention temporary relief. Greater clarity is expected this week, which could significantly affect scrap availability and pricing in the Gujranwala market,” a market insider said.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have moved down by around PRK 5,000/mt ($18/mt) to PKR 130,000-135,000/mt ($460-477/mt) ex-warehouse. The tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 230,000-237,000/mt ($813-838/mt) ex-works, down by PKR 3,000-5,000/mt ($11-18/mt) week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 282.90