Most import scrap offers in Pakistan have remained largely stable this week, with only a slight downward correction seen in some deals and offers. While demand has shown some signs of recovery, seasonal monsoon conditions continue to pose challenges, affecting logistics and overall market sentiment.
More specifically, this week, offers for ex-Europe/UK shredded scrap in containers have been voiced mainly at $370-375/mt CFR, against $372-375/mt CFR last week. According to sources, several deals for at least 3,000 mt in total of shredded scrap from the UK have been signed at $370-375/mt CFR during recent days.
Meanwhile, ex-UAE shredded scrap offers have been voiced at around $382-385/mt CFR, against $385-388mt CFR last week, while offers for HMS grade scrap have been reported at $360-365/mt CFR levels. “There is a noticeable preference for UAE-origin material, driven by restocking needs, inventory gaps, faster delivery times, and ongoing shipping disruptions from Western regions,” a market insider told SteelOrbis.
According to sources, several previously inactive customers are now becoming active again. Besides, low production levels and recovering consumer demand are gradually helping Pakistan regain part of its previously strong customer base, which had contracted significantly over the past three to four years due to market challenges. However, the monsoon season may impact market activity and sentiment, as reports of excessive rainfall and potential flooding are emerging from various regions.
At the same time, greater clarity on the implementation of the country’s budget is emerging. From this week onward, customers are expected to reassess and potentially shift their import strategies, focusing on specific products that could offer more favorable landed costs under the new tax and duty structure.
Meanwhile, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 140,000/mt ($493/mt) ex-warehouse, mainly the same as last week. Besides, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000-240,000/mt ($828-846/mt) ex-works, compared to PKR 235,000/mt ($828/mt) ex-works last week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 283.83