The continuing decline in 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 adopted a wait-and-see position.
Accordingly, offers for shredded 211 scrap of UK origin in containers to Pakistan have settled at $385/mt CFR, down by $5/mt week on week, while most customers’ bids have been heard at $380/mt CFR. After a few deals for ex-UK shredded scrap were signed at $385/mt CFR at the end of last week, the material has since changed hands at $383-385/mt CFR.
“Trade activity remains slow as Pakistani steel mills have still been operating at reduced capacity this week, at approximately 40-45 percent of maximum levels, with no indication of a sales recovery in the near term,” a market insider told SteelOrbis.
In the meantime, local prices for rebar have remained relatively unchanged since last week with offers for 10-12 mm rebar of grade 60 standing at PKR 245,000/mt ($879/mt) ex-works. Besides, offers for local scrap equivalent to shredded have settled at PKR 140,000/mt ($502/mt) ex-warehouse, the same as last week.
“Offers are expected to settle at approximately $380/mt CFR as suppliers lower their prices due to weak demand from buyers. With limited trading activity and seasonal factors at play, market sentiment is likely to remain subdued, resulting in price stabilization,” another source said.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 278.65