Prices for import scrap in Pakistan have dropped by over $10/mt again this week due to weak global conditions in the scrap segment. Though demand is still limited, it may improve by the end of the week, market sources believe.
Offers for shredded 211 scrap of UK and European origin in containers to Pakistan have been reported at $397-405/mt CFR, dropping from $410-420/mt CFR last week. This means that offers have witnessed a fall of $23-30/mt in total over the past fortnight. The latest deal has been signed at $395-400/mt CFR for a “distressed cargo”, according to market sources, versus contracts at $410-415/mt CFR in the middle of last week and at $405/mt CFR late last week.
Prices for HMS I from the UAE have been heard at $385/mt CFR. There have been no takers at this price.
Market sources said that there has been limited demand for imported scrap recently as local rebar prices have been under pressure and also liquidity issues have worsened for mills. Nevertheless, after the latest drop in scrap and some rebound in futures prices in China, buyers from Pakistan may become a little more active in purchases.
