In the first week of the New Year, import scrap activity in Pakistan has remained mainly muted, with most buyers holding back in anticipation of a clearer price direction in the global scrap market. Concurrently, the unfavorable business environment in the finished steel segment due to adverse weather conditions discourages Pakistani steelmakers from booking any material in a hurry. “The markets are very slow to pick up right now. A rainy weather spell across the country plus the extraordinarily cold weather coupled with rising Omicron cases are resulting in very lackluster demand,” an official at the leading Pakistan-based rebar mill stated.
Rare import offers for shredded scrap in containers to Pakistan have been heard at $535-540/mt CFR Qasim, unchanged week on week. However, by the middle of the current week some foreign suppliers started testing the Pakistani market with offers at $545/mt CFR Qasim. “Bookings are not aggressive these days because of weather conditions,” a Pakistani trader stated.
Meanwhile, the prices for local scrap equivalent to shredded in Pakistan have risen over the past week by PKR 5,400/mt ($31/mt) to an average PKR 125,900/mt ($713/mt) ex-warehouse due to falling inventories.
Prices for rebar for 10-12 mm rebar of grade 60 in Pakistan have remained unchanged at PKR 193,000-195,000/mt ($1,093-1,104/mt) ex-works in north regions and at PKR 189,000/mt ($1,070/mt) ex-works in southern regions. However, according to sources, real bookings are being signed at around PKR 183,000/mt ($1,039/mt) ex-works. “Following an increase in sales tax by three percent on scrap and with the expected pick-up in sales, prices started increasing and within a week I believe, rebar mills will attain their quoted prices,” a Pakistan-based source commented.