Trade activity in the import scrap market in Pakistan has been moderate this week, with most deals reported with small discounts given the negative mood in Turkey’s import scrap market, coupled with the still slow demand recovery in Pakistan after the elections.
More specifically, most offers for ex-UK shredded scrap in containers have been voiced at $440/mt CFR, against $440-445/mt CFR last week. Meanwhile, several deals for at least 3,000-5,000 mt in total of ex-EU shredded scrap are reported to have been signed at $437/mt CFR, $439/mt CFR and 443/mt CFR Qasim at the end of last week and the beginning of this week.
”Post-election, the political situation and the environment has gotten worse in Pakistan, affecting the steel business and scrap import activity,” a market insider stated.
Meanwhile, offers for Dubai origin HMS have settled at $413-415/mt CFR, against $415/mt CFR last week, with volumes falling significantly, while only small-volume deals have been reported at $410/mt CFR this week.
Meanwhile, tradable local prices for rebar 10-12 mm of grade 60 have remained relatively stable this week at around PKR 268,000/mt ($959/mt) ex-works, while local prices for scrap equivalent to shredded are still assessed at PKR 165,000-170,000/mt ($590-608/mt) ex-warehouse.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.48