Import scrap prices in Pakistan have shown a slightly firmer trend this week, as exporters have continued to test higher levels. However, buying has remained selective, with most mills still focusing on limited bookings and keeping their price ideas below the levels currently being offered.
More specifically, offers for ex-EU/UK shredded scrap in containers have been heard at around $375/mt CFR this week, compared to $370/mt CFR last week, while one trader said that UK-origin shredded has been discussed in a wide range lately, with the lowest level at around $370/mt CFR and the highest up to $385/mt CFR, depending on supply and shipment details. Meanwhile, buyers’ workable indications for shredded scrap have largely stayed at $370-372/mt CFR.
According to sources, a few deals have been concluded at $372/mt CFR during the week, up from around $365/mt CFR heard for small lots at the end of last week. In terms of volumes, shredded scrap totalling approximately 3,000-5,000 mt is reported to have been booked during the past week from the EU and the UK, with some cargoes also heard from Bahrain. Market participants have also recalled that, at the end of last week, numerous deals for small quantities were heard at around $365/mt CFR and slightly higher.
Meanwhile, offers and indications from the UAE market have remained firm. According to sources, HMS I/II 80:20 from the UAE has been booked at around $356-362/mt CFR this week, compared to offers at around $360/mt CFR heard last week, while tradable levels have been reported at approximately $363-365/mt CFR for PNS and around $365/mt CFR for sheared HMS. Offers for shredded material for ex-UAE/Bahrain have been voiced in the $383-385/mt CFR range, compared to $375/mt CFR heard last week.
In the meantime, Turkey’s import scrap market has started to follow a sideways movement this week. Specifically, while the latest deal signed for an ex-Finland cargo with HMS I/II 80:20 scrap at $373/mt CFR Turkey has not signalled a decline in deep sea scrap prices, most market players believe that it shows that the upward trend of prices has now stopped, which has tempered sentiment in Pakistan following last week’s bullish undertone. According to a EU-based scrap seller, the market anticipates Turkish mills will start exerting stronger pressure on European scrap offers. An ex-Scandinavia booking done at around $373/mt CFR means there are only a couple of buyers in the market willing to pay this price, as SteelOrbis reported earlier.
In the local Pakistani market, the tradable level for local 10-12 mm grade 60 rebar has been reported at around PKR 220,000-225,000/mt ($786-804/mt) ex-works, though some sources have cited slightly firmer assessments at PKR 222,000-228,000/mt ($793-815/mt) ex-works. Local scrap equivalent to shredded has remained at around PKR 135,000/mt ($482/mt) ex-warehouse. However, some sources have reported even higher offers - closer to PKR 141,000/mt ($504/mt) ex-warehouse, reflecting the stronger undertone cited by market participants.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 279.95