Following several weeks of price declines for imported shredded scrap in Pakistan, this week market insiders have reported new offers and occasional deals for ex-UK/EU scrap at lower levels. In the meantime, this week local rebar manufacturers have decreased their offers to domestic customers, given the strengthening of the national currency against the US dollar.
More specifically, according to sources, import scrap trade has remained moderate in Pakistan due to the continuing liquidity issues and the slow demand recovery, with several deals for around 3,000 mt in total of ex-UK/EU shredded scrap in containers signed at $420-425/mt CFR levels at the end of last week-beginning of this week. However, by Wednesday, October 4, new offers have decreased to $410-415/mt CFR Qasim.
Meanwhile, although local rebar producers have been strongly affected by soaring energy costs, this week their prices for local 10-12 mm rebar of grade 60 have decreased to PKR 278,000-282,000/mt ($978-992/mt) ex-works, down by around PKR 10,000/mt ($35/mt) week on week, while the tradable level has already been estimated at PKR 275,000/mt ($267/mt) ex-works. “Due to the recent strengthening of the Pakistani rupee against the US dollar, all big steel mills have decreased their offers for rebar this week,” a market insider told SteelOrbis.
In early October, the value of the Pakistani rupee has risen to around 284.36 to the US dollar, from 298.38 in early September.
Local scrap prices equivalent to shredded have settled at PKR 165,000-175,000/mt ($580-615/mt) ex-warehouse, down by PKR 8,000-10,000/mt ($28-35/mt) week on week.
All prices on Pakistani rupee basis include 18 percent VAT.
$1 = PKR 284.36
