The continued decline in the import scrap prices has triggered a slight rise in demand from Pakistani buyers this week. Accordingly, some of them have decided to replenish their stocks, though most market participants remain convinced that prices will continue to fall further and, consequently, have taken a wait-and-see position.
Accordingly, offers for shredded 211 scrap of UK and European origin in containers to Pakistan have been settled at $510-515/mt CFR, down $10/mt week on week, while most customers’ bids have been heard at $500-505/mt CFR level. After a few deals for ex-UK shredded scrap were signed at $515/mt CFR at the beginning of the week, the material changed hands at $510/mt CFR, $10-15/mt lower than prices fixed in small trades a week ago.
“Pakistani buyers were quite active in concluding deals as mills have limited scrap stocks, but due to the current political instability in the country, most metropolitan and mega projects are still on pause and steel demand is not sufficient so far,” a market participant told SteelOrbis.
Meanwhile, local prices for rebar grade 60 in Pakistan have remained mostly unchanged at around PKR 200,000-203,000/mt ($995-1,010/mt) ex-works. The prices for local scrap equivalent to shredded in Pakistan have remained at PKR 120,000-123,000/mt ($597-612/mt) ex-warehouse, the same as last week.
$1 = PKR 200.9