During the past week, import offers of shredded scrap in Pakistan have continued to rally, still supported by a stir in the global market. Although tight supply is discussed among market insiders all over the world as the main driver for higher prices, Pakistani customers report that they are easily able to get material with prompt shipment.
Accordingly, most offers for shredded 211 scrap of European origin in containers to Pakistan have climbed by $25/mt over the past week to $450-455/mt CFR Qasim, for January delivery. SteelOrbis has learned of a booking of a small batch of shredded scrap in containers from Europe at $450/mt CFR Qasim at the beginning of the current week. In rare cases, offers for shredded scrap have already reached $480/mt CFR Qasim.
“It’s odd how offers are below Turkish prices. Normally, Pakistan is $35-40/mt higher than HMS I/II in Turkey. Probably, pre-positioned cargos by traders are offered. The current market is unexplained in most cases,” a representative of a Pakistani mill commented.
Based on the latest deals, the HMS I/II 80:20 scrap price is estimated to be at $464-467.5/mt CFR Turkey, as SteelOrbis reported earlier.