With the continuing uncertainty as regards future developments in the global steel and raw material markets, import activity in the scrap segment in Pakistan has to some extent become muted. At present, Pakistani scrap customers are either delaying new scrap bookings or exerting pressure on foreign suppliers, voicing lower bids. Although import scrap prices have indicated further slight declines this week, the effect on the cost of imports for Pakistani customers hardly seems visible due to the ongoing devaluation of the Pakistani rupee.
Accordingly, this week import prices of shredded 211 scrap of European origin in containers to Pakistan have been voiced at $510-515/mt CFR, down $5/mt over the past week. Rare deals for small lots have been heard at the low end of the abovementioned range, though some bids have been voiced at $500/mt CFR. In the meantime, a booking for ex-UAE HMS to Pakistan was concluded this week at $485/mt CFR.
Meanwhile, local suppliers of scrap equivalent to shredded have reduced their prices to PKR 107,000/mt ($629/mt) ex-warehouse Lahore, versus PKR 112,000/mt ($662/mt) ex-warehouse Lahore valid a week ago. Meanwhile, it is possible to buy domestic 12-32 mm rebar of grade 60 in Pakistan at PKR 174,000/mt ($1,024/mt) ex-works Lahore, down at least PKR 1,000/mt ($10/mt) from the official offers valid a week ago.
All prices on Pakistani rupee basis include 17 percent VAT.
$1 = PKR 169.951