Notwithstanding the decline in import scrap offers this week, prices were not low enough to entice Pakistani steelmakers to be active in bookings. Weak sentiments in the Turkish scrap market with the sharp decrease in the latest bookings have continued to keep Pakistani buyers away from buying. “Trading activity is very low here for now, with customers being extremely cautious and scared as regards new purchases,” a major Pakistan-based scrap trader stated.
On balance, while most import offers of shredded 211 scrap of European origin in containers to Pakistan have been heard this week at $550-555/mt CFR Qasim, down $5/mt over the past week, some UK-based suppliers have been struggling to find a buyer even below $550/mt CFR Qasim, with delivery to the port at the end of December. Ex-Dubai HMS scrap prices have declined by $15/mt over the past week, to $505-510/mt CFR Karachi. The continued currency volatility has continued to exert pressure on Pakistani steelmakers. In particular, over the past week the Pakistani rupee has devaluated further almost by one percent against the US dollar.
Meanwhile, the prices for local scrap equivalent to shredded have decreased by PKR 7,000-8,000/mt ($39-45/mt) to PKR 123,000-125,000/mt ($692-704/mt) ex-warehouse.
At the beginning of the current week, most major Pakistani rebar producers increased their offers to the domestic market, citing the recent increase in electricity prices, unfavorable exchange rates, and the shortage of scrap, in particular, among the main reasons. Consequently, following the revision, local prices for 10-12 mm rebar of grade 60 in Pakistan have been settled at PKR 197,000-198,000/mt ($1,108-1,114/mt) ex-works, up PKR 2,000/mt ($11/mt) within the past week.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 177.74