Following several weeks of price hikes for imported shredded scrap in Pakistan, this week market insiders have reported new deals signed for ex-UK/EU shredded scrap at slightly lower levels. In the meantime, most Pakistani customers expect local rebar producers to drop their prices in the next round of booking, given the slight strengthening of the national currency against the US dollar.
More specifically, according to sources, new deals for ex-UK/EU shredded scrap are reported to have been signed at $435-437/mt CFR levels, down by $3/mt week on week. At the same time, while some offers are still heard at $440/mt CFR, the same as last week, more foreign suppliers have been ready to provide small discounts, decreasing their offers to $437/mt CFR.
“Quite large volumes of finished steel have been sold in Pakistan over the past weeks, though this week the market has slowed down in terms of purchases. Notably, the Pakistani rupee has depreciated a lot, which is why finished prices have come under pressure, but this week we finally see some strengthening of the national currency. So, now Pakistani consumers are expecting lower prices from rebar producers,” a market insider told SteelOrbis. The latest offers for base 10-12 mm of grade 60 were heard at PKR 292,000/mt ($989/mt) ex-works last week, while this week the tradable level is estimated by most customers at around PKR 285,000/mt ($965/mt).
Meanwhile, local scrap prices equivalent to shredded have dropped significantly in Pakistan this week, reaching around PKR 184,000/mt ($623/mt) ex-warehouse, down by PKR 16,000/mt ($54/mt) over the past week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 298.38