Import scrap offers to Pakistan have moved up sharply over the past week in contrast to developments in the Turkish market. According to suppliers, the main reason is a shortage of containers and, consequently, exorbitant freight costs. “Sellers are apparently asking for higher levels and Pakistani mills have no other choice but to shift higher input costs to finished steel prices,” a Pakistan-based source commented.
Accordingly, import offers of shredded 211 scrap of European origin in containers to Pakistan soared by $15-20/mt within the past week to $545/mt CFR Qasim. Following a few bookings at $540-542/mt CFR Qasim during the current week, on August 17 Pakistani rebar mills decided to withdraw their rebar offers, aiming to wait for a clearer market outlook. Nevertheless, by the end of the day, some producers returned to the market, having adjusted prices upwards by PKR 6,000/mt ($36/mt) for new orders from August 20. On balance, 12-32 mm rebar of grade 60 in Pakistan is available now at PKR 171,500/mt ($1,039/mt) ex-works.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 163.540