With bearish sentiments in the global scrap market mounting lately, import scrap activity in Pakistan has remained mostly muted this week, with most buyers holding back in anticipation of cheaper offers. Furthermore, the depreciation of the national currency has continued to exert pressure on Pakistani steelmakers, making the business environment especially challenging for them. Specifically, the Pakistani rupee broke all previous records this week, falling to a new low of PKR 225 against the US dollar.
Accordingly, on Monday 18, offers for shredded 211 scrap of UK and European origin in containers to Pakistan have dropped to $475-485/mt CFR, down by $5-15/mt week on week. However, by Wednesday, July 20, several deals have been reported at $465-470/mt CFR, while customers’ new bids have already been heard at $450/mt CFR. Meanwhile, offers for ex-UAE HMS grade scrap have been voiced at around $510/mt CFR this week.
At the same time, prices for rebar for 10-12 mm of grade 60 in Pakistan have remained mainly unchanged at PKR 228,000-230,000/mt ($1,013-1,022/mt) ex-works Punjab. However, according to market insiders, several manufacturers have informed their clients about “closing all sales and bookings until further notice”.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 225