Though there has been no visible improvement in demand for scrap in Pakistan, the price trend has started to reverse following the latest scrap bookings to Turkey at higher prices. Only some customers resumed negotiations amid their concerns that prices will continue to move up further, while most importers have been holding back in anticipation of higher local rebar prices.
Accordingly, this week import prices of ex-UK shredded scrap in containers to Pakistan have been voiced largely at $550-555/mt CFR Qasim, up by $5/mt from last week. After several deals were closed at $545/mt CFR late last week, this week new deals have been reported at $550-552/mt CFR. “We heard that some suppliers are already targeting $557-558/mt CFR Qasim,” a Pakistan-based trader stated.
Meanwhile, current shredded 211 scrap offers from the US have been voiced at $545/mt CFR, up $5/mt over the past week. Ex-UAE HMS scrap offers have increased to $520-525/mt CFR, up $10/mt within the past week, while ex-UAE shredded 211 scrap is currently available at $560/mt CFR Qasim, SteelOrbis has learned.
The local prices of scrap equivalent to shredded in Pakistan have increased to around PKR 123,245/mt ($699/mt) ex-warehouse, from PKR 119,000/mt ($675/mt) ex-warehouse last week. In the meantime, local prices for 10-12 mm rebar of grade 60 have remained mostly unchanged at PKR 188,000/mt ex-works ($1,066/mt), but it is expected that prices will rise in the coming days. “Many Pakistani scrap buyers are still resisting new prices and are waiting for rebar quotes to improve. We hear that due to input cost increases a rebar price hike is inevitable,” another Pakistani-based trader told SteelOrbis. All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 176.4