Although foreign suppliers of shredded scrap have started to lower prices to Pakistan, most Pakistani buyers have continued to follow a wait-and-see stance. Most regional customers are delaying new scrap bookings as the business environment in the finished steel segment has remained unfavorable. Thus, scrap trading in Pakistan has remained muted this week.
Specifically, offers for shredded 211 scrap of UK and European origin in containers to Pakistan have been heard at $555-560/mt CFR, down by $5/mt over the past week. “We heard only a few bookings done at $560/mt CFR recently, but it is very quiet here now. Maybe there will be some pick-up in trade next week considering falling scrap inventories,” a Pakistan-based trader told SteelOrbis. In the meantime, ex-UAE HMS offers have risen this week due to increased freight rates. Accordingly, most offers have been voiced this week at $535-540/mt CFR, up $5/mt week on week.
Meanwhile, the prices for local scrap equivalent to shredded in Pakistan have been moved sideways compared to the previous week at PKR 116,500/mt ($659/mt) ex-warehouse.
Prices for 10-12 mm rebar of grade 60 in Pakistan have also remained mostly unchanged at PKR 188,000/mt ($1,064/mt) ex-works. “Slow rebar consumption from end-users increased mills’ rebar inventory. Prices are mainly at the same level for now due to slower sales,” a market source stated.
All prices on Pakistani rupee basis include 17 percent VAT.
$1= PKR 176.6