Limited trading volumes and ongoing seasonal factors have kept sentiments in Pakistan’s import scrap market subdued this week, while import prices have remained mainly at the same levels as reported two weeks ago or have showed a slight downward bias.
More specifically, most offers for ex-UK/EU shredded scrap have been voiced at $390/mt CFR, compared to $390-395/mt CFR two weeks ago. However, according to sources, a few discounted sales have been reported this week, with at least one deal for around 5,000 mt of ex-EU/UK shredded scrap reported to have been signed at $385/mt CFR. Offers for ex-UAE shredded scrap have been voiced at $392-395/mt CFR, against $395-400/mt CFR two weeks ago.
“Trade activity remains slow as Pakistani steel mills have still been operating at reduced capacity this week, at approximately 50 percent of maximum levels, with no indications of a sales recovery in the near term,” a market insider told SteelOrbis.
In the meantime, local prices for rebar have remained unchanged since late December with offers for 10-12 mm rebar of grade 60 standing at PKR 245,000/mt ($878/mt) ex-works. However, offers for local scrap equivalent to shredded have settled at PKR 140,000/mt ($500/mt) ex-warehouse, compared to PKR 140,000-145,000/mt ($500-517/mt) ex-warehouse two weeks ago.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 280.23