With the Eid holiday approaching next week, activity in Pakistan’s import scrap market has been subdued. Import shredded scrap prices are firming, but trading remains muted amid holiday-related disruptions and ongoing logistical issues. High freight costs continue to weigh on Pakistani demand, although some deals are still being concluded from the UAE.
More specifically, offers for ex-Europe/UK shredded scrap in containers have been voiced mainly at $385-390/mt CFR, mainly the same as last week, though, according to sources, most bids have been reported at $380-382/mt CFR levels, up by $5/mt week on week, with a few deals for small quantities reported to have been signed at the abovementioned levels.
Meanwhile, ex-UAE shredded scrap offers have been voiced at $390-392/mt CFR, the same as last week, while offers for HMS grade scrap have been reported at $370-375/mt CFR. According to sources, several deals for at least 2,000 mt in total are reported to have been signed at $390-392/mt CFR levels.
“Given the recent situation between Pakistan and India, sellers in Pakistan are grappling with challenges stemming from newly imposed war surcharges. This has pushed prices up by approximately $10/mt. Traders who had previously secured material from scrapyards are now attempting to redirect shipments to India, as transferring these price increases to Pakistani buyers is becoming increasingly difficult,” a market insider told SteelOrbis.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 135,000-140,000/mt ($477-494/mt) ex-warehouse, mainly the same as last week. Besides, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 238,000-242,000/mt ($843-857/mt) ex-works, the same as last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 283.24