Imported scrap prices in Pakistan have edged higher in recent weeks, with offers from the EU and the UK showing a modest increase. Offers from the UAE, meanwhile, have risen more sharply over the same period. Despite the upward price movement, trading activity has remained moderate, as weak domestic demand continues to limit buying interest.
More specifically, this week most offers for ex-EU/UK shredded scrap in containers have moved to $365/mt CFR, compared to $360-365/mt CFR last week, while some traders have started to report even higher offers at $370/mt CFR. According to sources, several deals for at least 5,000 mt in total of ex-EU/UK shredded scrap are reported to have been signed at $362-366/mt CFR Qasim over the past week.
In the meantime, offers for ex-UAE HMS I/II 80:20 scrap have increased sharply to $360/mt CFR, versus $345/mt CFR a few days before the New Year. Besides, offers for ex-UAE shredded scrap have been voiced at $375/mt CFR, up by $5/mt week on week. According to sources, several deals for ex-UAE HMS grade and shredded scrap were signed at $345/mt CFR and $370/mt CFR, respectively, last week.
At the same time, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 130,000/mt ($464/mt) ex-warehouse, mainly the same as two weeks. The tradable level for local 10-12 mm grade 60 rebar has remained at PKR 220,000/mt ($786/mt) ex-works.
“Operating rates at mills remain weak, with utilisation estimated at roughly 40 percent. We still hear occasional bids for ex-EU shredded scrap at around $360/mt CFR as mills remain cautious in new bookings amid tight margins,” a Pakistani trader told SteelOrbis.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 280.22