After numerous deals were signed at higher prices last week, import scrap activity in Pakistan has been mainly muted, with most buyers holding back in anticipation of a clearer price direction. “Customers are resisting and hesitating to buy, but sellers are firm and do not want to go down,” a Pakistan-based trader told SteelOrbis.
Import offers for ex-UK/EU shredded scrap in containers to Pakistan have been heard at $640-645/mt CFR Qasim, up by $5/mt week on week, but down $5/mt compared to offers at the beginning of the week. Only a few deals for ex-UK shredded scrap have been signed at $645/mt CFR, while most Pakistani buyers have been refraining from new purchases. Meanwhile, ex-UAE HMS were offered at $630-635/mt CFR but then this week offers went down to $600-610/mt CFR due to slow buying in the Indian scrap market, but according to sources, since yesterday the Indian market resumed buying and offers for ex-Middle East HMS have rebounded again to $615-620/mt CFR levels.
Meanwhile, the price for local scrap equivalent to shredded in Pakistan has increased by PKR 1,000-3,000/mt ($6-17/mt) to around PKR 127,500/mt ($709/mt) ex-warehouse.
Prices for 10-12 mm rebar of grade 60 have also been increased by around PKR 5,000-6,500/mt ($28-36/mt) to PKR 200,000-207,000/mt ($1,112-1,150/mt) ex-works.
“We think that import scrap prices have a chance to decrease considering the slight correction in crude oil prices which affects the freight rate and the decline in China's rebar futures,” a market insider told.